Volume 7 Issue 9 - February 15, 2011

Stillman News

Ethics

Interview with Stillman Standout Senior Allen Ratz.

See p. 7

Is the NFL’s proposed extension of the regular season endangering players?

See p. 8

International News Taiwanese general arrested on espionage charges.

See p. 15

The Stillman Exchange

www.StillmanExchange.com

The Official Business Publication of Seton Hall University

Made possible by the generous support of the O’Brien Family

Finnish Firm Sends Record Foreign Direct Investment into Uruguay

TUESDAY, FEBRUARY 15, 2011 - VOL. 7 NO. 9

Government Plans to Phase Out Sponsorship of Mortgage Giants Fannie Mae and Freddie Mac

By William Suggs, International Business Writer Stora Enso of Finland announced a $1.9 billion project with Arauco of Chile to build a state-of-the-art pulp mill; this is the largest foreign investment into Uruguay to date.

To emphasize the scale of the investment, the companies stated that the mill at Punta Pereira will produce 1.3 million tons per year from the companies’ 628,000 acres of forestland holdings in Uruguay. They expect the mill to be operational by the first quarter of 2013.

Juoko Karvinen, CEO of Stora Enso, said in a press release, “Low cost plantation-based pulp is one of the cornerstones of our strategy.” This strategy helped to revive the industry after recent years’ efforts to reduce reliance on inefficient European mills and address chronic oversupply.

Additionally, this massive investment has serious implications for the Uruguayan economy which boasts enormous economic growth and critical debt reduction since the crisis experienced in 2002.

According to a statement made by the companies, construction of the mill is forecasted to boost GDP by 0.8 percent and 2 percent when it is fully operational. It is also expected that an average of 3,200 workers who will be employed by the project.

Regarding the health of the his country’s economy, President Jose Mujica stated, “We have no doubts that we have a unique historic opportunity, unprecedented in the last 50 to 60 years and if the current rate of investment, growth and development are sustained we could have a per capita income of $20,000 by the end of 2014.”

An annual IMF report on the health of the Uruguayan economy was recently released, which reiterated much of the optimism regarding fiscal responsibility and sustained growth. However, as growth continues, the report emphasized the challenge “to secure a soft landing of the economy.”

Continued on page 16...

INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports Business.................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Front cover image courtesy of rentpost

By Dhara Patel, Money & Investing Writer Mortgage giants Fannie Mae and Freddie Mac have cost taxpayers $134 billion since they were taken over by the government in 2008.

According to The Wall Street Journal, more than two years after the federal government bailed out the government-sponsored enterprises, the Obama administration proposes phasing out support for Fannie and Freddie by gradually reducing the government’s footprint in the mortgage market.

On Friday, February 11, the Treasury Department unveiled its plan to phase out sponsorship of both organizations.

Through its plan, officials portray a housing-finance system that would include a role for both the public and private sec-

tors; this would be different from the current system in that the government’s role would be smaller, underwriting standards would be tighter, and borrowers would be required to hold larger amounts of equity in their homes.

The White House has presented three options, according to The Wall Street Journal.

The first option would put the vast majority of the mortgage market in the hands of the private sector, where mortgages would be securitized without any government backing. Therefore, the middleman role currently played by Fannie and Freddie would no longer exist.

Another possibility is supported by a handful of economists; the government would create a mostly private market with a “limited government backstop” that would

only become active in buying or guaranteeing loans when a financial crisis limits market participation.

Lastly, the government could create new privately-owned companies that buy mortgages from banks in order to securitize them. The created securities would be explicitly guaranteed by the federal government as long as the underlying mortgages meet certain criteria. The government would collect fees for this “insurance”, just as the Federal Deposit Insurance Corporation insures bank deposits.

On the whole, one plan calls for the wholesale elimination of Fannie Mae and Freddie Mac. The other two suggest the government should be involved in the mortgage market, but in a much smaller capacity.

The current proposals offer a series of short-term steps that would help attract private capital into the mortgage market, including a reduction in the maximum loan sizes that Fannie and Freddie can purchase and gradual increases in the fees the mortgage companies charge lenders.

Both of these steps could make it more attractive for lenders and investors to purchase loans without government backing.

However, they could also raise borrowing costs for millions of Americans which creates pressure on the U.S. home-building industry.

According to a statement by Joshua Rosner, Managing Direct of Graham Fisher & Co, in The Wall Street Journal, the proposals are likely to set off a furious effort by the financial-services industry to protect generous subsidies and seek out new revenue sources.

“Investors haven’t been willing to buy mortgages that don’t have government backing primarily because there haven’t been enough steps taken to overhaul the market for private-label securities,” Rosner says. “Investors are on strike.”

Contact Dhara at dhara.patel@student.shu.edu

Madoff Trustee, Picard, Cries Foul on Mets

By Anthony Crisci, Sports Business Writer The trustee for the once notable Bernard L. Madoff Investments Securities LLC is now going after more than just the personal capital of the ex-stock exchange guru. The New York Mets are the new victims of the trustee, Irving R. Picard, and are in for more than they bargained for.

The trustee, who is designated to liquidate Madoff’s assets, is going after investors that profited from Madoff’s Ponzi scheme. He is suing the Mets on behalf of the victims of Madoff’s fraud.

The Wilpons, majority owner of the baseball team, and their lifetime partner Saul Katz are the ones who find themselves on the defensive. Sterling Equities, owned

by Fred Wilpon, had many investments with Mr. Madoff and is paying for his wrongdoings even after the once time billionaire is imprisoned.

The legal complaint was filed under seal and will not be available for the public.

What will be available for everyone to see is the amount of money Picard is hoping to receive from the Mets’ owners.

After Madoff was arrested over two years ago, the speculation was that the Wilpons had lost millions of dollars at the hands of Madoff. Picard made it public that in 2009, the leaders of the Mets organization withdrew $570.5 million after investing only $522.7 million, resulting in a profit of over $45 million. Naturally this caused problems with the victims of the fraud case.

The Mets seemed to be the overall winners while other investors lost.

In a recent statement, Sterling Equities assured the public these allegations will not affect the Mets’ operations, “We will have no further comment at this time,” Sterling Equities reacted.

“Regardless of the outcome of these discussions, we want to emphasize that the New York Mets will have all the necessary financial and operational resources to fully compete and win. That is our commitment to our fans and to New York.”

The net profit that the Mets gained through this withdrawal is believed to be the victims’ money, and if the case is won by Picard, the funds will happily be divided among the investors that Madoff financially wounded.

There is still a chance that the case will not even make it into the courtroom, but this would mean that both sides will need to decide on a reasonable number. Mario Cuomo, former governor of New York, has recently been added to mediate the dispute between the two sides.

Picard will keep the case running until he feels that Madoff’s victims are reciprocated for their losses. The total amount of funds that he is looking to receive from the Wilpons comes close to the billion dollar mark, but it is believed that there will be a settlement for less.

Contact Anthony at anthony.crisci@student.shu.edu

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TUESDAY, FEBRUARY 15, 2011

Money & Investing

Company Comparison

This Week’s Poll Question:

Graph courtesy of Google Finance

With President Obama’s recent call for one million electric cars on the road by 2015, would you consider buying an electric car?

A: Yes, especially because of tax breaks.

B: Yes, I like the idea of going green.

C: If they can make electric more efficient.

D: No, I don’t see myself getting rid of my gas guzzler.

Last Weeks Poll Question: Graph courtesy of Google Finance

With the iPhone now going to Verizon, will you switch?

Yes, I plan on switching (44%) No, I will not switch (19%) I do not want an iPhone (25%) When the price is right (13%)

Sector Summary Courtesy of Google Finance

NEWS BRIEFS

Earnings Stock to Watch: Caterpillar Inc. Graph courtesy of Yahoo! Finance

• Pandora indicated that it would raise $100 million through an initial public offering. This figure will likely change as bankers gauge investor demand in the 11year-old company that has helped change the way people listen to music.

• There is a new sign that investor confidence is returning. Last month, the rate of new funds being invested in U.S. stock mutual funds reached its highest level in seven years. The year-opening surge also marked the first time in nine months that investors added more than they withdrew.

• The IPO market is getting hotter; the pipeline company Kinder Morgan raised $2.86 billion in the largest ever initial public offering for a U.S. company backed by private equity firms.

• U.S. exports of goods and services rose to $163 billion, a 1.8 percent gain, and the best showing since July 2008. Sales of industrial machinery, civilian aircraft and autos and auto parts led the export gain.

World Currencies Courtesy of Google Finance

THE STILLMAN EXCHANGE

Money Funny Corner

Facebook Creator Sets New Goals to Accomplish

By Danny Jones, Money & Investing Writer Facebook creator Mark Zuckerberg made an announcement today proclaiming new goals that he would like to accomplish at a record-setting pace, and some at a record-setting age. The youngest billionaire’s net worth is currently $4 bagillion dollars, and recent comments suggest that he expects this measurement of self worth to continue increasing.

Zuckerberg made an announcement yesterday stating that, along with creating Facebook, he will now be breaking new records by becoming the oldest winner of the National Spelling Bee Champion, the youngest President of the United States, and even the first person to land on Mars.

Zuckerberg commented on all of the records he was going to break by saying, “I have always thought that I could spell better than the thirteen-year-old kids I always see on the television. They have to spell easy words like Honorificabilitudinitatibus and Pneumonoultramicroscopicsilicovolcanoko niosis.”

“I could do that before I was two years old. As for being elected President? That’ll be the easiest one. I’m the creator of Facebook.... Facebook!” he exclaimed.

“More people know who I am than who our Vice President is right now. I will not only accomplish all of this, but I will do it within the next month or so, maybe in two.”

Mr. Zuckerberg has always been a driven, determined man with plenty of confidence. With these new feats, he will stay busy and may even help out America with some governmental support.

Given the anticipation of Zuckerberg most certainly becoming our next commander-in-chief, President Barack Obama has tried preaching to Zuckerberg, asking him to use some of his hard-earned money to reduce the U.S. deficit.

“If he used about one-sixteenth of his money, not only would our country be out of debt, but we would be in the green by about $500 million,” Obama exclaimed. “I have climbed his money mountain which is compiled with all of his earnings since birth. It took me almost two years to reach the top.

He could really help America.”

Although he is only 25 years old, the young Facebook founder will be setting numerous records because of his wealth and prestige. He may just be the thing that pulls the United States out of the economic funk and into a new era of prosperity.

In related news, Tom Anderson, creator of Myspace, also made a public statement claiming that he was out to break multiple records as well. It is unfortunate that nobody listened or seemed to care.

Contact Danny at daniel.jones@student.shu.edu

All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.

THE STILLMAN EXCHANGE

Money & Investing

TUESDAY, FEBRUARY 15, 2011

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Greed is C o m m on p la ce on Wall St reet

By Stefano D’Urso, Money & Investing Writer Gordon Gekko gave America its first fictitious villain on Wall Street after Oliver Stone’s 1987 feature film of the same name exposed the dark side of a cutthroat industry that can sometimes value profit over integrity.

Nowadays, it would appear that there are Gordon Gekko type characters all over Wall Street committing crimes such as money laundering, insider trading and organizing ponzi schemes. One of the most public figures to date has been Bernard Madoff who ran a $50 billion ponzi scheme for close to two decades, only to get caught in March 2009.

Given the recent financial crisis and its corresponding federal crackdown on Wall Street, one would think bankers and traders alike would take responsibility for their

actions. Yet, there are always a few rotten eggs. Last Tuesday, federal authorities revealed charges against three hedge fund portfolio managers and one analyst, describing a paper-shredding, flash-drive destroying panic that ensued when these individuals expected the scrutiny of investigators.

According to the Associated Press, these new arrests are part of a large scale clean-up effort to eliminate insider trading.

The Securities and Exchange Commission said the “conspiracy earned more than $30 million in illegal profits.”

Investigators followed a trail of text messages, emails, and phone records to piece together their evidence. “Shred as much as you can,” one of the hedge fund managers wrote to another in a string of messages after they saw reports from U.S. Attorney Preet Bharara’s press conference vying to bring down insider trading on Wall

Street. Perhaps the most disturbing action committed by the foursome charged is the chasing of garbage trucks at night in order to scatter the pieces.

Bharara promised last week that more arrests would result from the investigation by stating, “we are far from finished.” The investigation was announced last fall and directed at hedge fund managers; information had leaked which suggested that managers had been learning confidential information about public companies through contacts at a public research firm Primary Global Research.

The company was known for its efficient research results, but authorities revealed that the firm “sometimes specialized in linking corrupt employees of public companies willing to prematurely divulge earnings results or acquisition announcements with hedge fund managers eager for a trading edge,” according to the Associated

Press.

FBI Assistant Director Janice K. Fedarcyk clarified that “When you are paying insiders for earnings data before it’s announced, that isn’t ‘research’. That’s cheating.”

The men charged, Samir Barai, Donald Longueuil, Noah Freeman, and Jason Pflaum, are accused of sharing illegal information regarding at least six publicly traded companies which resulted in the making of “millions of dollars in illegal profits.”

Greed, it seems, continues to be a rampant problem that is not so far from the truth conveyed by Michael Douglas in that iconic film from two decades ago.

Contact Stefano at stefano.durso@student.shu.edu

Deutsche Boerse in “Advanced Talks” to Buy NYSE Euronext

By Brian Daniels, Money & Investing Writer In a joint statement on Wednesday, Deutsche Börse AG, more commonly known as Deutsche Boerse, and NYSE Euronext announced that they were in “advanced talks” of an all-stock merger. If the deal succeeds, it would see the Frankfurt, Germany based Deutsche buy the NYSE; thus, creating the world’s largest exchange operator. Yes, you heard that correctly: The New York Stock exchange would be owned by foreigners.

According to data put together by Bloomberg, the combined company would house publicly traded companies worth about $15 trillion, a whopping 28 percent of the total global stock market value. The combined company would have a presence in 13 European countries in addition to Germany and the U.S. Deutsche Boerse would own about 59 to 60 percent of the joined entity; NYSEEuronext shareholders would own the rest.

According to those close to the situation

Photo courtesy of newshopper.sulekha.com

The NYSE, operated by NYSE Euronext, may be bought out by Deutsche Boerse.

who have remained anonymous, the deal would value NYSE shares at a 10 percent premium over its closing price of 33.41 on Tuesday, February 8.

The discussions were made public knowledge on Wednesday just hours after the London Stock Exchange Group announced it had agreed to buy the Canadian-Toronto stock market operator TMX. That purchase would lead to $4.1 trillion of stock exchanges each year under the

Ho u s in g Ma rk et C o n t in u es it s S lu m p

By Stephanie Gonzalez, Money & Investing Writer The last three months of 2010 brought nothing but bad news for homeowners.

According to CNN Money, “27 percent of homeowners with mortgages owe more than their homes are worth. That’s up from 23.2 percent a quarter earlier.”

That means about 15 million Americans owe more than what their houses are actually worth. The term “underwater” comes to mind when taking these numbers into consideration. If you owe $300,000 and now your house is valued at $60,000, you are currently considered “underwater.”

However, they are not necessarily unable to pay their debt. It is similar to shopping for anything else. If you purchase something on your credit card and it suddenly goes out of style, the item lose value, but you still pay the amount that you purchased the item at.

People buy houses on mortgages which are loans in exchange for cash paid for property. In return, the borrower must pay a set amount per month to repay the principle with interest.

In the fourth quarter 2010, there was a 2.6 percent drop in home values, according to Fox News.

As Ryan, author of My New Hobby-

Watching My Home Value Decrease, pointed out a new fascination with watching the devaluation of homes.

The website Zillow.com is used to “zestimate” the values of houses. This site averages the value of a home compared to the other houses in the housing markets.

For Ryan, Zillow.com is like watching a train wreck: you cannot look away from the decreasing home values.

According to Fox News, the areas most affected by the decrease in home values are Nevada, Arizona, California, and Florida. In Las Vegas, more than 81 percent of homeowners have negative equity, which are total assets minus total liabilities. In other words, what something is worse less what one is paying for it.

According to economist David Blitzer, as long as homeowners can keep up with their mortgage payments, they can resurface from their underwater predicaments.

Homeowners are not affected by their homes being underwater unless they intend to sell them in hopes of covering mortgage payments.

There still is hope: the recovery expected in home prices will lead to a decrease in the number of homes underwater.

Contact Stephanie at stephanie.gonzalez@student.shu.edu

combined company, according to Yahoo!

News’ Jonathan Spicer and Edward Taylor.

That is pennies compared to the $20+ trillion of potential trading volume under the Deutsche-NYSE combination.

Speaking of the LSE, Deutsche Bank has also tried to purchase the exchange numerous times in the last decade. Clearly, that never happened. For this reason, both companies urged that talks could fall apart at any time. The merger may not even happen. After all, no ‘due diligence’ has been completed yet, according to a source close to the German side of the merger.

In addition, the companies have held talks at least twice before in 2008 and 2009 to no avail (these talks restarted late last year).

However, at this point in time, the companies are talking about a name, and all signs seem to indicate the merge. Last week, both CEOs met in Amsterdam with lawyers, investment banks such as JPMorgan Chase, and staffers. They agreed in principle on the deal and to exchange information. An agreement could be

announced as early as next week; the two boards are voting on Tuesday, February 13.

The industry is under intense cost pressure from aggressive startup electronic rivals who have cut deeply into the market share of traditional companies like the NYSE, forcing companies to consolidate and combine technologies. The news sent all stock prices of companies in the industry up, as moves like these put additional pressure on the ‘smaller players’, like Nasdaq, to also merge with other firms to keep up.

One thing that must be clarified is that even if a merger is announced, that does not mean it is going to happen. The deal must be cleared by both U.S. and European regulators and politicians.

This news highlights the current trend of globalization and consolidation via the rise of technology. It is the ultimate symbol of the U.S. losing dominance, as the stock exchange is at the heart of Wall Street.

Contact Brian at brian.daniels@student.shu.edu

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Money & Investing

TUESDAY, FEBRUARY 15, 2011

JP Morgan Sued for Madoff Ponzi Scheme

USPS Warns of Possible Default Photo courtesy of mansfield.htnp.com

By Steve Paramo, Money & Investing Writer JPMorgan Chase & Co. (NYSE:JPM) has accused the court appointed trustee of overstepping his bounds. The mammoth financial institution is currently being sued for approximately $6 billion in regards to its involvement in the Madoff scheme.

CNN Money reported that Irving Picard, who was appointed as trustee by the New York bankruptcy court to recover money for former investors, is seeking damages of about $5.4 billion and an additional $1 billion for fees and profits.

JPMorgan was the banking institution used by Bernard Madoff from 1986 until 2008, and Irving is accusing top bank executives of knowing that Madoff’s company was illegally partaking in the Ponzi scheme.

Through a statement issued by legal representative John Savarese, JP Morgan responded by declaring that the trustee is just “trying to pursue an enormous backdoor class action to recoup damages” of the Madoff victims, for which JPMorgan believes it is not responsible for.

John Savarese also stated that “JPMorgan believes that the Trustee is entirely wrong in asserting that JPMorgan violated any federal statutes or regulations,” in a document filed in the U.S. Bankruptcy Court in New York.

The Ponzi scheme orchestrated by Bernard Madoff used his financial services firm to deceive investors into believing that they would receive better than average returns on their investments.

Almost two years after pleading guilty to a federal judge for running the largest Ponzi scheme in history, Bernard Madoff is fulfilling his sentence of 150 years in prison.

However, he is not the only one feeling the effects of his actions. The trustee has sued multiple investors for profiting off this scam.

A few of the high profile investors who have been accused of profiting from Madoff’s fraud include the owner of the New York Mets, bank giant HSBC, and various others.

Among those affected from the scam are Hollywood stars such as John Malkovich, the wife of Ringo Starr Barbara Bach, and Kevin Bacon, along with many others who lost key real estates and necessary retirement funds.

While the trustee surely has his hands full with these new cases, his hard work has yielded some successful results.

In December 2010, the trustee reached a $7.2 billion settlement with Barbara Picower, widow of investor Jeffry Picower, who had withdrawn $7.8 billion from Madoff's firm since the 1970s, even though he only invested $619 million, according to BBC News.

Irving Picard has seen success in winning cases to restore losses from the Madoff scheme. He will not back down from corporate giants such as JPMorgan.

Contact Steve at steve.paramo@student.shu.edu

THE STILLMAN EXCHANGE

The future of the postal service is threatened because of alternative ways to send and receive messages. New internet communications has reduced demand for its services.

By Jennifer Crowe, Money & Investing Assistant Editor The United States Postal Service (USPS) has seen better days. The Postal Service has recently released concerns that it will not be able to meet health benefit payments to future retirees.

The USPS has seen a reduction in revenue of 3.3 percent or $15.3 billion in the last few months, according to Bloomberg.

The reduction in revenue is being the result of reduction in mailings. Physical mail is being replaced by e-mail and online forms of communication.

The bulk of hand delivered mail today is being sent through private companies such as United Parcel Service (NYSE:

UPS) and FedEx (NYSE: FDX).

This leaves the USPS high and dry with an enormous loss in business. The Chief Financial Officer of the Postal Service has said in recent interviews that the company is trying to devise a plan to increase package shipping. UPS and FedEx are major companies to compete with, but it is something that can be done.

First class mail has always been one of the most profitable sources of income for the US Postal Service until recently. The volume of first class mail dropped a total of 6 percent in the first quarter of this fiscal year.

Over the course of the past few years, the Postal Service has implemented many initiatives to cut expenditures such as clos-

ing locations, cutting hours, and increasing postage rates.

According to CNN Money, the Postal Service has eliminated 40 million work hours to save a total of $2 billion dollars.

Not only has the governmental agency tried to cut back on spending, it has also tried to increase revenue with the use of new and exciting marketing plans.

The Postal Service released a statement saying, “Despite significant cost reductions and efforts to grow revenue, current financial projections indicate that the Postal Service will have a cash shortfall and will have reached its statutory borrowing limit by the end of the fiscal year. Absent changes in applicable laws, the Postal Service will be forced to default on some of its financial obligations to the federal government on September 30, 2011.”

In response to the Postal Service’s plans to close various locations across the country, The Wall Street Journal reports, “The U.S. Postal Service is planning to close as many as 2,000 post offices, on top of the 491 it said would close starting at the end of last year. In addition, it is reviewing another 16,000–half of the nation’s existing post offices–that are operating at a deficit, and lobbying Congress to allow it to change the law so it can close the most unprofitable among them.”

The Postal Service, which was established in 1775 and became an independent agency of the U.S. government in 1971, will be working hard to reach its financial goals by the end of this fiscal year.

Contact Jen at jennifer.crowe@student.shu.edu

Marvell Technology Expands Mobile Products Photo courtesy of Bryan Murawski

Mobile devices such as Apple’s iPad are threatening the Desktop PC market like never before.

However, stiff competition still exists in the laptop and portable PC marketplace.

By John Cenzia, Money & Investing Writer Marvell Technology Group Ltd. (NASDAQ: MRVL) stated that the trend towards mobile computing, including tablets and smartphones, is a bigger threat to desktop PCs than laptops. They expect computer makers to counter Apple Inc.’s (NASDAQ: AAPL) iPad with more powerful laptops in order to highlight differences in capability between the two types of devices.

Many computer manufacturers such as Hewlett-Packard Company (NYSE: HPQ) and Dell Inc. (NASDAQ: DELL) already have a line of “desktop replacement laptops.”

HP’s Pavilion line and Dell’s high-end Inspiron line all have specifications that could compete with value desktop PCs that the average household would typically own.

This will result in the narrowing of the gap between desktop PCs and laptops, said Marvell CEO Sehat Sutardja. He continued by saying that statistics show a steady

decrease in demand for desktop PCs as laptops grow in performance and productivity.

“This is good for the industry because desktops are typically left under the desk for five to seven years, whereas consumers replace their laptop every two to three years.”

As laptops grow in the marketplace, desktop sales are slowing. Desktop computers typically use hard-disk drives (HDDs) for storing information, and Marvell manufactures the chips that control these drives.

Since consumers are demanding more compact and elegant designs, laptop manufactures are switching to solid-state drives (SSDs), which are much smaller, lighter and faster.

Although Marvell is mostly known for being the maker of BlackBerry smartphone processors, they are expanding their presence in the smartphone and tablet market in order to cope with declining demand for their standard hard drives.

Marvell’s chips control roughly 60 percent of hard drives sold, according to Chris

Caso, an analyst at Susquehanna International Group in New York. He believes that Marvell may struggle to dominate the new market for SSD controller chips, as it had for traditional HDDs. Although Marvell has already been supplying Intel Corp. (NASDAQ: INTC) and Micron Technology Inc. (NASDAQ: MU) with the new SSD controller chips, there are a greater number of competitors manufacturing SSD controllers.

Furthermore, SSDs are still too expensive for the average consumer; this is slowing their widespread adoption. Marvell does claim that these new chips are more profitable.

“Space is premium. Power consumption is at a premium,” Sutardja said.

“Integration always wins.”

Sutardja continued by saying that Marvell will begin to show progress in getting their products into tablets and phones starting late this year, the new battleground for gaining market share.

He says that they will capitalize on the fact that handset makers will try to integrate all parts of a device into one piece of silicon.

Doing so will allow phones to last longer between charges, save space for more compact design and cut costs.

Marvell is one of the few companies that have all the assets and technologies to create these multifunctional chips along with Qualcomm Inc. (NASDAQ: QCOM) and Broadcom Corp. (NASDAQ: BRCM).

Marvell’s shares have gained 7.1 percent this year, which is currently up $0.08 at $19.75 as of February 11.

Contact John at john.cenzia@student.shu.edu

THE STILLMAN EXCHANGE

Money & Investing

TUESDAY, FEBRUARY 15, 2011

5

Inflation Concerns Push Bond Rates Higher

By Scott Watson, Money & Investing Writer Last Tuesday, yields on the benchmark 10 year note rose to a 10 month high of 3.72 percent. This is in large part due to expectations by some of an improving economy, as well as a concern over rising inflation.

On the following day, the number fell back down to 3.67 percent, after the successful auction of the government’s 10 year notes. A Treasury Note has a standard interest rate and makes semi-annual payments to the owner, and has a maturity of 10 years or less.

This was a surprise for investors because the yield rose 0.3 percentage points in a little over a week from its previous rate of 3.3 percent. The yield has been around 3.4 percent since mid December.

This increase in yields is promising for bondholders who want to put their funds in long-term debt obligations. The increase came after the sale of three-year bonds was sold at a discount.

This example of increasing yields indicates that there is either greater optimism in economic growth or expectations of increased inflation.

This possible sign of growth is counter-

Photo courtesy of giftsanddec.com

Increased U.S. bond yields indicated possible concerns over inflation.

10 year note interest rates have risen to a 10 month high of 3.72 percent.

acted by the problem of increasing price levels.

Inflation can be viewed as a positive sign in an economy that is in expansion and growth. However, too much inflation means that prices will go up too quickly; something the Federal Reserve limits with the use of monetary policy.

There was a concern since the asset

bubble popped that deflation may kick in, which means that prices would fall and the economy would shrink, but with recent indicators, this may be behind us.

One of the reasons for the increased concerns over inflation is that food prices, as well as energy prices, have sharply increased over a short period of time.

This effect can be shown through the

eight percent increase in oil prices as well as a dramatic increase of 60 percent in the price of corn. The cause of this is an increased demand from the ethanol industry.

Supermarkets around the country have tries to keep their prices constant but with costs slowly inching up, this may not be possible.

This effect, although seen in this one industry, affects what investors are thinking in regards to inflation and economic growth.

With yields on bonds rising, there is more appeal to buy government bonds, given that they are considered secure investments with low default risk.

The government hopes that its 30 year bonds have the same success, as it will auction off approximately $16 billion dollars in the near future.

With people buying more bonds, as well as more faith being placed in the financial markets, things are starting to appear less gloomy Contact Scott at scott.watson@student.shu.edu

Camden, New Jersey Plans To Hike Taxes

By Ashley Perrone, Money and Investing Writer Camden, New Jersey’s city council is holding a vote on whether or not to increase property taxes in order to rehire many unemployed police officers and firefighters.

In the last month, Camden has laid off 160 police officers as well as 60 of its 215 firefighters. The increased tax proposition would be used to fund the rehiring of 47 members of the police force and 13 firefighters.

A 21 percent tax charge increase was proposed by Camden Mayor Dana Redd. If the proposal is passed, the taxes for property owners would increase by an average of $160 per year, according to mayoral spokesman Robert Corrales.

“We’re trying to minimize the overall effect,” he said. The average property value in Camden is $27,000; this would add more than $4.1 million to city coffers for fiscal year 2011, he said.

“This wasn't the mayor’s first option,” said Corrales. He also commented that the city has not increased its residential property taxes for nearly 15 years. “We’ve exhausted just about every other option.”

The mayor’s office announced last

Photo courtsey of kplctv.com

There will be fewer cops on the streets of Camden, as the city has cut almost half of its police force in order to meet the city’s $26.5 million budget cut.

Tuesday that a $5.1 million dollar federal grant was administered through the Federal Emergency Management Agency for the city of Camden. Some of the funds will be used to rehire more of the firefighters that were laid off last month.

However, the FEMA money can not be used to hire police officers, which is limited to fire departments.

Camden’s location is across the Delaware River from Philadelphia, another city that is known for extensive violence and crime.

There are concerns whether the massive layoff would result in increased violence in Camden. According to records, the city is rated highest for violent crime in the country. Last year, Camden slipped to sec-

ond place, just behind St. Louis, according to CQ Press, a publisher that focuses on government policy and business.

Corrales has said that the proposal was simple to come up with; the only concern and worry is that residents may not want to make the deal. The city currently has an 89 percent success rate for tax collection.

Al Ashley, the president of the Camden Fire Officers union, mentioned that he owns quite a few properties in the city and describes the tax rate to be “pretty low.”

However, he believes that increasing property taxes should be the last resort.

He suggested that the city should improve the financial situation by selling off all the deserted properties. The city can also ramp up tax collection efforts against delinquent property owners.

“Whether you pay taxes or not, you’re still going to get 100 percent of the services,” said Ashley. “We go to businesses that don’t pay taxes. But everybody needs to contribute. Everybody’s got to have some skin in the game.”

Contact Ashley at ashley.perrone@student.shu.edu

A OL A cq u ires Th e Hu f f in gt on Po s t

By Doug DeMarco, Money & Investing Writer AOL recently announced that it will buy The Huffington Post, a leading American news website. The sale was agreed upon last Monday, and involves a significant price. Both sides agreed to a sale which priced the website at $315 million. $300 million of the purchase will be in cash; the remaining $15 million will be in the form of AOL stock. The move, the largest in AOL’s history since it split from Time Warner Cable in 2009, is a very positive and potentially rewarding acquisition for AOL. The transaction will officially be completed before the third quarter of 2011.

AOL, which has transitioned from an internet service provider to an entertainment portal, will see increased coverage through the news gathering abilities of The Huffington Post.

The creator of the news website, Arianna Huffington, will assume the

Photo courtsey of thirdage.com

The Huffington Post’s co-founder and editorin-chief, Arianna Huffington will remain in a similar position after AOL’s takeover.

responsibility for AOL’s editorial content, and will be given the title of President and Editor-in-Chief of the newly named Huffington Post Media Group.

This will increase Huffington’s responsibilities to include bringing in content for the merged company. Huffington will have control over AOL’s national and local news, as well as overseeing other AOL’s operations, such as MapQuest.

The addition of The Huffington Post gives AOL a fresh, new way to grow: a boost in talent and a better product that will help bring readers to AOL’s other sites and increase the use of its services.

AOL plans to increase its ad revenue with the move, which will be a key component of the company’s turnaround. Other websites have not taken advantage of the opportunity to sell local and display advertisements, a market AOL plans to dominate.

This plan is what will make AOL successful over other media sites. The entertainment company will evolve and grow using a new format with The Huffington

Post as its centerpiece.

The potential of success for AOL is substantial. 117 million people utilize AOL’s services every month; with this purchase, AOL has the ability to bring in new customers and reach people it originally had little chance of enticing.

AOL has faced difficulty recovering from its losses following the decline in its ISP services. Dial-up internet, which was once state-of-the-art, is now obsolete.

The acquisition of The Huffington Post signals a new era for AOL as a company that provides top-quality entertainment and news.

The addition of a quality news organization to AOL will result in full use of merger synergies. Given that AOL was a company that was slowly dying, it looks like the company is getting a second glimpse at life.

Contact Doug at doug.demarco@student.shu.edu

6

TUESDAY, FEBRUARY 15, 2011

Stillman News

THE STILLMAN EXCHANGE

Student-Faculty Debate Joins the Capital Markets Colloquium

By Rory Manning, Stillman News Writer The Stillman School of Business is known for bringing real world examples to student’s fingertips to help them learn and understand the material. This was exemplified by the annual Jim & Judy O’Brien Capital Markets Colloquium. There were different workshops presented by industry professionals during the day on topics ranging from portfolio performance and understanding market flow to mergers and acquisitions, offering something for everyone.

The main event of the day was a student-teacher debate, which battled over whether the euro is at death’s doorsteps. The pro euro student team consisted of Lee Duan, Managing Editor for The Stillman Exchange, Camela Cruz, Finance Club Chair, and Vijar Kohli, Investment Club Chair. They were debating against a faculty team consisting of Tony Loviscek, Finance Department Chair, Mark Holtzman, Accounting Department Chair, and Viswa Viswanathan, Associate Dean for Undergraduate and MBA Curricula.

The debate included five questions in which each team had three minute responses, as well as one minute rebuttals. The first question dealt with determining whether the current strain on the euro was an original design flaw or a flaw in the actual execution. Both sides concluded that it was a design flaw but drew different stances in regards to its effect on the euro’s survivability.

The second question addressed whether the existence of the euro lessened or exacerbated the impact of the global recession on member countries. The student team’s argument focused on how the recession brought some of the euro currency problems to light. As a result, the EU is now in a position to reassess and revamp the currency. As a rebuttal, Loviscek again stated that “they can have consistent monetary policy but they do not have the same fiscal policy, which is what caused the problem.”

Photo courtesy of Ricardo Rosario

The Capital Markets Colloquium concluded with a student-faculty debate that brought together department and student-club chairs in friendly competition.

A discussion then ensued regarding whether Greece should have been expelled for improper fiscal behavior. The students immediately stated that Greece should not have been expelled, which would result in a serious train in the financial markets.

Loviscek responded by stating, “Should Greece have been admitted to begin with?

What do they have to offer aside from olives, beaches, and some feta cheese?”

The next question asked whether the participating countries in the euro had effectively redistributed or aided in the creation of a net increase in wealth. The students made an argument that the Euro allowed greater development of immigration between the countries. The use of human capital rose dramatically. On the other hand, the faculty continued with the idea that access to the euro allowed some governments to run up incredible amounts of debt; uncontrollable spending has actually dis-

tributed debt and not wealth.

The final question of the debate asked if the rigors of devaluations, caused by divergent monetary and fiscal policies from the Treaty of Rome to the inception of the euro had better prepared the original members for a single currency. The students argued that the past events forced reasoning for an economic union. The faculty replied with a humorous anecdote, which explained that it was “appropriate for the problems to surface in Greece. The euro is a great Greek tragedy.” There was no due diligence.

The judges for the debate were Dean Joyce Strawser, Professor John Harrington, and Rory Manning, a senior Finance and Marketing major. Dean Strawser announced that although the result was close, the faculty team did a better job responding to the questions. Therefore, they were the winners.

After the debate, discussion regarding

the euro and its effects on the global market continued. Dan Zadrozny, a senior Finance and Accounting major stated, “The idea of a single unified currency across Europe was a brilliant idea. By creating one standard currency, trade would be easier among nations.

Something as simple as tourists traveling across Europe would no longer need to exchange currencies in every single country they visited.”

He also went on to discuss the idea of whether countries may or may not cede from the EU due to the economic strain it is now in. “It is difficult to say whether the euro losing value will encourage countries to cede from the European Union. I think a single country would need greater evidence than a currency losing its value to drop out of the EU. However, in the case of a single country doing well on an economic level in comparison to other countries yet being hurt by the lesser value of the Euro, this may provide grounds for a country to cede and return to using the original currency and operate independently. ” The debate over the Euro leads to many questions. Will some EU countries cede and return to their original currencies?

Will the euro become the global currency?

Will a similar idea be contrived and put into place in South America? The answers to these questions can only be speculated.

There are many different directions that the future economic and fiscal policies of the world could go in, and it is something that is worth paying attention to watching.

The Jim & Judy O’Brien Capital Market’s Colloquium 2011 proved that classroom learning can be applied to realworld situations. It was a great success and showed how the Stillman School is doing its best to bring real world examples into the students’ education.

Contact Rory at rory.manning@student.shu.edu

Women’s Basketball Coaches Association’s “Pink Zone” Helps Give Cancer Survivors Hope

By Ryan Garrity, Stillman News Editor Every year, women’s college basketball programs all across the country come together to create the Pink Zone, a program designed to raise awareness about breast cancer.

The Pink Zone was created by the Women’s Basketball Coaches Association in honor of the late coach Kay Yow, who coached college basketball for over 30 years. She lost her battle to breast cancer in January of 2009.

Throughout her tenure as head coach of the NC State Wolfpack, the Seton Hall University women’s basketball team was lucky enough to face off against coach Yow three times.

The Wolfpack had taken the first two meetings, and the final was played at the Prudential Center in 2008. The Pirates got the better of NC State in that game, winning 71-61. No one knew then, but this would be the last game Coach Yow would coach from the sidelines.

Seton Hall women’s basketball also has a special connection to Kay Yow, as head coach Anne Donovan played for her on the 1986 World Championship team and the

1988 gold medal Olympic Team.

In addition, assistant coach Jenny Palmateer had an outstanding four year career playing for Coach Yow, and then spent ten years as an assistant coach on her staff. Nana Rivers, SHU’s Coordinator of Basketball Operations, also played for the late Coach Yow at NC State.

This year, the Pirate’s Pink Zone game will take place on Wednesday, February 16 at 7 pm in historic Walsh Gymnasium.

Seton Hall will be taking on the Golden Eagles of Marquette University.

Meg Tarrant, a graduate student who has been planning the Pink Zone event, had to deal with a few roadblocks in the months leading up to the game.

“The biggest task was seeking in-kind donations from different companies and professional sports teams,” Tarrant said.

“Beginning in October, I compiled a list of all teams and local corporations to send request letters to. With this poor economy, we did not get the response we might have been looking for, but we were able to reach new donors and create a pretty impressive set of auction items and raffle prizes.”

Prizes will be given away both before the game and throughout. Fans can access the online auction at www.shupirates.com,

where they have the chance to win prizes such as tickets to see Wicked, tickets to a 2011 Yankee game, an autographed Patrik Elias stick, and much more.

On the day of the game, there will be a live auction featuring prizes such as an autographed Diana Taurasi jersey, an autographed Cappie Pondexter jersey and more.

There will also be a raffle table featuring prizes from the Cheesecake Factory, Tiffany & Co., the New York Jets, the New York Giants and many others.

All profits from the auctions and raffle will be given to the Kay Yow fund. Fans are encouraged to wear pink, and a prize will be awarded to the “pinkest fan”. The team will also be wearing pink Adidas uniforms.

Tarrant also said they wanted to focus on something new this year. “This season, we wanted to honor breast cancer survivors with a ball ceremony. Survivors will be brought down to the court 15 minutes before tip and presented with an autographed basketball by a member of the women’s basketball team. The idea of the Pink Zone is to honor survivors and offer hope to those battling the disease. I believe we will accomplish that through the ball ceremony.”

Tarrant hopes that this event can also

serve as a wakeup call to the Seton Hall community.

“The main message is that you should take care of your body and get it checked,” said Tarrant. “Secondly, we all need to have hope. Whoever we may know who is fighting, we need to offer them hope. The gathering of fans and students who will be in attendance Wednesday night are the strangers who have come together to put an end to women’s cancers and offer hope to those fighting any type of cancer.”

The women’s basketball team began the Pink zone fundraiser four years ago.

Back then, it was just one raffle. Each year they have raised over $3,000, totaling the amount raised to over $10,000.

This year, with the organization of the online auction, live auction, raffle, and a portion of ticket sales being donated, they would love to raise that number to well over $3,000 to maybe even $4,000. With the help of the generous Seton Hall community, that is certainly an attainable goal.

Contact Ryan at ryan.garrity@student.shu.edu

THE STILLMAN EXCHANGE

Stillman News

TUESDAY, FEBRUARY 15, 2011

7

Standout Senior Allen Ratz Looks Ahead to Bright Future

By Beverly Makarios, Stillman News Assistant Editor

Photo courtesy of Allen Ratz

This week’s Stillman Standout Senior, Allen Ratz, is a Finance and Management major with growing opportunities abound. Allen has proved to be an excellent student, displaying success in his studies as well as influence at the Hall. He serves his University as a member of the Stillman Corporate Membership Program and the Dean’s Advisory Committee. The years here at Seton Hall have given Allen many opportunities in advancing his career. He has received first place awards in some of the Stillman School’s case study competitions. Allen has also had the opportunity to intern with some of the nation’s most prestigious firms, including PricewaterhouseCoopers and Bank of America Merrill Lynch. In the following interview, Allen shares the unique experiences that he has gained as a Stillman student, his interests in the finance and management fields of business and the internship opportunities that have led him to full-time job opportunity.

Beverly Makarios: What are some of the experiences you gained as a participant in different case studies at the Stillman School?

Allen Ratz: The Stillman School does an outstanding job intertwining ‘real-world’ case studies into the curriculum.

While the case studies are certainly time consuming and challenging, I believe they are one of the best forms of learning. Case studies bring to life theoretical concepts and allow you to apply them to complex business scenarios. In particular, my finance courses have really honed in on the idea of utilizing case studies to emphasize vital business competencies. These include the use of Excel for financial modeling and forecasting, analyzing a firm’s financial health through critical ratios, and making insightful recommendations on capital budgeting decisions. Being able to present your findings in a clear and concise manner in front of your peers and professors is great preparation for a career in business. In a corporate setting, you are often placed in teams to accomplish a project which can last several weeks to several months. Having these experiences at Seton Hall has equipped me with the knowledge I need to maintain a competitive advantage amongst my colleagues in the future.

BM: You have been successful in a number of case study competitions last year. What did your participation in the Target Corporation Case Study entail?

AR: The Target Corporation Case Study took place in my Developing Management Skills course with Professor McCrea in the Fall of 2010. As part of our coursework, Executives from Target came to our class to present the difficulties they were having managing the Millennial Era workforce at their company. Each team’s responsibility was to conduct various SWOT analyses and produce research on ways that Target could successful recruit, retain, and incorporate the company’s Millennial workforce with its existing Baby Boomer and Generation X employees. At the completion of the semester, our team delivered a 15-minute PowerPoint presentation to Target Executives on what we believed was the most cost effective and practical solutions to meet their current business challenges. At the end of the case study, the Target Executives assessed each group’s per-

Senior Allen Ratz has turned a successful undergraduate career into a full-time offer with PwC, where he will start in May.

formance and announced that ours had been selected as the winners. Each member of our group was awarded a $250 Target gift card to enjoy over the holiday break. It was an unforgettable learning experience and an excellent opportunity to represent the Stillman School of Business in front of a major corporation.

Senior Allen Ratz has wonderful plans after life at SHU. BM: What did your Advisory Intern position with PricewaterhouseCoopers (PwC) entail? How did you go about receiving this internship?

AR: I initially came in contact with PwC by utilizing the Pirate Mentor service provided by the Career Center. I began to network with a Partner of the firm who was a successful Seton Hall Alum. I expressed my interest in learning more about PwC and potential internship opportunities and he was able to refer me to a recruiter who initiated the interview process. After a grueling six rounds of interviews with Partners, Directors, and Managers, I was extended an offer to participate in PwC’s summer internship program within the firm’s consulting practice based out of New York City. I spent 8 out of 10 weeks working on a prominent Hedge Fund client investigating the susceptibility of insider trading through document examinations, on-site interviews of the firm’s employees, and conducting various risk profile assessments. I had the opportunity to interact with many high-level executives including the CEO, CFO, and General Counsel as our consulting team worked to prepare the client for an impending SEC examination. Lastly, I was called upon to help formulate an effective compliance strategy that would mitigate regulatory enforcement and litigation risks based on the client’s current business model. At the end of the internship, I was extended a full-time offer to return to PwC upon graduation, which I gladly accepted.

position and what specific experiences did you gain as an intern?

AR: Interning in their Global Wealth & Investment Management division served as a springboard to my career in the field of finance. I worked with a group of wellrespected financial advisors in providing strategic financial planning and asset allocation to high-net worth clientele.

Specifically, my position entailed providing investors with a detailed analysis of various securities and the broader capital markets by researching financial instruments, debt & equity performance measurements, as well as economic indicators. During my 11 months at the firm, I also assisted with the creation of educational, estate, and retirement portfolio reports based on the client’s risk tolerance and investment objectives. Spending time at one of the largest banks in the industry helped to solidify my credibility as I moved forward in the job search and eventually led me to a consulting role with PwC. This experience also helped me transform concepts into practice. I often found myself utilizing the many skills that I’ve learned at the Stillman School such as performing research on Bloomberg, working with diverse teams, and completing assignments under stringent time deadlines.

BM: Apart from your academic life, you are also involved in the Stillman Corporate Mentorship Program and the Dean’s Advisory Committee. Would you encourage other students to branch out and explore other extracurricular activities? Why? AR: I would certainly encourage students to engage in various extracurricular activities. Becoming a well-rounded individual in college is not only about excelling academically but also involves stepping outside of your comfort zone to better yourself every day. As part of the Corporate Mentorship Program, directed by Michael Reuter, I’ve had the unique opportunity to meet high-level executives from major corporations including ADP, Verizon, and Prudential.

Speaking with such individuals at great lengths about my goals and aspirations was truly an eye-opening experience.

You would be surprised by how much you can learn from these types of people just by listening to their stories, the mistakes they’ve made along the way, and the journeys they’ve taken to success. I don’t know of any other universities that provide this type of opportunity to get up close and personal with the decision makers of some of the world’s largest corporations. Additionally, I’ve thoroughly enjoyed being part of the Dean’s Advisory Board and giving back to the Stillman Community by volunteering my time to improve the school’s already strong and robust business program. Extracurricular activities can often serve as an attractive topic of conversation at networking events or interviews and may even help you land a job by distinguishing yourself apart from the competition.

See the rest of our interview with Allen at www.stillmanexchange.com Contact Beverly at beverly.makarios@student.shu.edu

BM: You also interned for Bank of America. What was your

Annual China Night Takes Students’ Breath Away

By Nyala Eddings, Stillman News Writer On Wednesday, February 9, students were delighted by the cultural showcase presented by the Chinese Program on campus. Costumes, festive colors, and spectacular musical talent submerged the audience in an experience that will never be forgotten.

China Night, an annual program sponsored by the Asian Studies department, consisted of musical tributes, dance, and even comical performances. Opening with an amazing dance team and finishing with a group sing-along, the show kept its entire audience on the edge of their seats.

The Chinese Program did a wonderful job of instituting an Asian cultural environment by promoting the native Chinese colors and dressing in the appropriate Chinese attire and costumes. Some of the female performers were covered in the traditional Cheongsam, a form fitting one piece dress, while many of the male performers looked handsome in their Tangzhuang, the traditional Chinese jacket.

Not only did many of the participants speak the traditional Chinese language, all of the performers wore attire that symbolized an aspect of the Chinese culture.

China night had several instances of musical talent; however, the audience would agree that the most appealing facet of the night itself was within the hands (and feet) of the talented Chinese dancers. Partnering with an inspiring dance company, King’s Dance and Arts Studio, China Night overwhelmed the audience with the fine art of dance.

Performing throughout the night, the dancers presented different styles of dance; this included folk dance and even modern techniques from the Chinese culture.

Opening with a group performance, the young female dancers immediately grabbed the attention of the audience as soon as they stepped foot on stage. The angelic dancers warmed the hearts of the crowd with their smiles and dainty dance routine.

The program even allowed the audiences to take a step further in the Chinese culture by exhibiting a very powerful Martial Arts piece that not only contained the customary Kung Fu uniform but weapons too. Vibrant in the col-

ors of red and gold, all of the participants created an immersion into a new world.

This opening act was just the beginning of the evenings’ entertainment. Capturing the eyes of many, a member of King’s Dance Company displayed a folk dance that told the story of a graceful peacock. Dressed in a beautiful white garment, she portrayed her unique talent of storytelling through dance. China Night not only put together a show that entertained the students, it also educated them on Chinese culture.

The Asian Studies department welcomed all students to partake in an experience that was ultimately life changing. Those who engaged in such a culturally rooted show would admit that they have a new admiration and respect for the Chinese culture. China Night was a brilliant showcase and will be enjoyed even more so in the years to come.

Contact Nyala at nyala.eddings@student.shu.edu

8

TUESDAY, FEBRUARY 15, 2011

Ethics

THE STILLMAN EXCHANGE

Is the NFL’s proposed extension of the regular season a contradiction to its responsibility for player safety?

On the one hand, the NFL preaches prioritizing player safety; the league stresses the dangers of concussions and has implemented rules to protect players from injuries. On the other hand, this priority is contradicted by the NFL’s consideration of increasing the regular season from 16 to 18 games.

William Stella, Freshman, Economics Major

Photo courtesy of ESPN

Fairness to the Players

Gary Iannarone, Junior, Finance Major

Common Sense Safety It is interesting that the NFL has two very different attitudes in regards to the possibility of extending the regular season. This decision can either make or break the NFL. If it does go ahead with the extension, those two games will increase revenue, popularity, and other monetary benefits.

Given current economic conditions, this option is very enticing since extending the regular season will increase revenues by a projected 10 to 15 percent. This has the potential of a significant financial boost for the NFL. At the same time, the two game extension also has negative consequences, which is why the players’ union does not agree with an extension.

This disagreement has the potential to cause a great deal of conflict. Some sports analysts predict a lock-out occurring, which would result in no NFL season at all. NFL players do not want to risk the additional possibility of injury.

With the NFL continuing to stress its policy of player safety being its number one priority, it seems contradictory that they are attempting to extend the season by two games.

Since many players are continuously injured with many of those injuries being career-ending, an extension of the regular season by two games only puts NFL players at greater risk. It is here that the NFL stance on these two issues becomes difficult to comprehend and leads to the question of

what the NFL really prioritizes: player safety or profit?

Of course, all of America, being the great football fans that we are, would love to have an extension of the regular season; more games equates to more football action.

However, if it is at the cost of player safety, such a decision is unethical. If the stars that we are cheering for become injured due to the more stressful and intense season, then whatever bonuses or incentives we received as a result of the extended season is reversed.

NFL players aren’t even provided with any real form of incentive given that their salaries would most likely remain unchanged with an increase in games. In essence, the players would be playing those two additional games for free. Add the risk of injury in there and you definitely have a mix that players will not agree to.

We can hardly blame the NFL in their attempt to maximize profits. This is normal; it is their goal as a company, as well as the goal of many of the owners. Even though it may seem that their goal is to win games, doing so leads to financial success.

Extending the season is one way of achieving higher revenue.

But surely, they can devise another way in to increase profitability without placing players in greater risk. The NFL should stick true to their word and prioritize player safety first before profit. They should realize that without the players, there is no profit.

Contact Gary at gary.iannarone@student.shu.edu

The average NFL fan has witnessed a season full of change; it may be the last season for awhile due to the possibility of a player lockout. In this past season alone, concussions in the NFL have increased 21 percent from the previous year.

As a result, NFL Commissioner Roger Goodell has been issuing hefty fines to players who continue to “lead with their heads” when they tackle, which is the most often cause of concussions.

Now, to make things even more interesting, the NFL wants to add two games to the regular season with no salary increase.

Given these two facts, it is clear that something is wrong here.

How can the NFL prevent player injuries to the point that they make the game almost “soft” while they ask the players to play two additional games without more pay?

In my opinion, the NFL’s stance is hypocritical. I feel that Goodell is not trying to gain himself more money; rather, he is trying to please the owners so that they

Contact Will at william.stella@student.shu.edu

A recent poll of 155 Seton Hall University Students who were asked the question: “Do you think the NFL regular season should be extended by two games?”

Joan Orejuela, Junior, Political Science Major

Safety First

Even though over half of the NFL players feel that the game is getting safer, they do not agree to a two-game extension of the regular season.

view him as a good commissioner.

If player salaries remain the same, the one major group that benefits from the additional games without additional salary increase is the team owners.

I would not mind the increase in season length if the NFL did not have the current policy on concussions. The game should be played in the way that it was originally intended: hard hits are expected in this game of aggression.

Goodell tries to take the hits out of football by pulling the safety card, which does not give him the right to make the players play two extra games.

Football is inherently a dangerous sport; those who play it on any level know of the possible consequences. Thereby, there is no right or wrong answer here; this is not an ethical issue.

This would be no big deal if the NFL did not create a double standard in regards to player safety. The real issue at hand is fairness, and respect for the players who perform for us every Sunday.

There is no way to get around an injury in football. Football players, especially professional ones, know this fact before the game even begins. When something does go wrong, it is the player who oftentimes decides when enough is actually enough.

Discussions between the NFL and the NFL Players’ Union over an extension of the regular season from 16 to 18 games have caused uproar over player safety; the NFL has seen an increase in concussions by 21 percent in just one season.

However, if player safety is the issue between these two parties, isn’t the actual player the best advocate for what they feel is safe? Injuries can go unnoticed if hidden well enough by an overzealous player eager to stay in the game. In reality, the number of games, whether 16 or 18, makes little difference if the players on the field are willing to play through injuries and not speak up when they’re hurt.

If player safety is the goal, the psyche of the player in the game matters; this makes the difference in judgment and can lead to a player disregarding an injury that he has sustained.

Players should be conditioned to react to all injuries with seriousness, even if a bruise on the head turns out to be just that: a bruise. If the players are not conditioned to self examine, medical professionals must be trained to make the decisions for them.

The NFL does take the stance that player safety comes first, a fact that was seen last December when new rules were initiated to “check players on the sideline during a game to determine whether they have a concussion or can get back on the field.” Such procedures limit opportunities for injuries to go undetected. These procedures are necessary to keep players from harm no matter whether the season consists of 16 or 18 games.

Contact Joan at joan.orejuela@student.shu.edu

The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics.

These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.

THE STILLMAN EXCHANGE

Editorials

TUESDAY, FEBRUARY 15, 2011

9

Concealed Violations of Women’s Rights in Argentina

By Alexandra Hauenstein, International Business Assistant Editor From the outside looking in, Argentina appears to possess many of the attributes in line with a modern state that embraces equality and human rights. It is one of the few democratic states in the region of Latin America, boasts a highly educated population, and has a high overall level of economic development.

Furthermore, Argentina holds a position on the United Nations Human Rights Council.

Unfortunately, the state’s image within the international community is in sharp contrast to the harsh reality of the denial and violation of women’s human and reproductive rights exposed with the help of nongovernmental organizations such as Human Rights Watch.

According to Human Rights Watch, an organization dedicated to defending and protecting human rights internationally, more than 40 percent of all pregnancies in Argentina end in illegal, unsafe abortions.

This means that for nearly every child born there is one aborted. Complications from these abortions are the leading cause of maternal mortality in the state. These are entirely preventable deaths.

In October 2002, Argentina passed the National Law for Sexual Health and

Responsible Procreation, which includes funding contraceptives to women free of charge through public sector health clinics.

While this law is a significant achievement in establishing legislation supporting reproductive rights and family planning, the law is merely a symbolic commitment that builds on the misconception that Argentina respects women’s human rights. In practice, women are not receiving the care they are entitled to and the government’s lack of accountability for this failure is a direct correlation of how little they care.

Human Rights Watch has been one of the major actors in bringing this issue to the attention of the international community. Its 2005 report “Decisions Denied: Women’s Access to Contraceptives and Abortion in Argentina” and the 2010 follow-up “Illusions of Care: Lack of Accountability for Reproductive Rights in Argentina” are milestones in exposing the human rights abuses and insurmountable obstacles Argentinean women face, preventing them from making independent reproductive decisions.

One obstacle is the doctors who charge for contraceptives and unnecessary tests even though Argentine law guarantees them for free. They also harass patients and deliberately give misinformation on contraception methods. This obstacle has the greatest

The Stillman Exchange

impact on poor women, who cannot afford the illegal charges and whose lack of education forces them to rely on what doctors tell them.

A second obstacle is the government, which is failing to comply with its own legislation. Even though demand for contraceptives is greater than the supply available, discrepancies in the distribution of contraceptives among the provinces are adversely affecting women in rural Argentina.

A third obstacle is domestic and sexual violence, especially in the form of spousal rape. Abusive partners sabotage the use of contraceptives because keeping a woman pregnant prevents her from leaving the relationship. Not only is this contributing to the abortion rate, but also to the spread of HIV. One of the most important international treaties focusing on women’s human rights is the 1979 Convention on the Elimination of All Forms of Discrimination against Women adopted by the United Nations General Assembly. It defines discrimination against women, which is protected by the Universal Declaration of Human Rights.

One of the essential definitions of discrimination against women is in the preamble, stating that “the role of women in procreation should not be a basis for discrimination.” Not providing access to health

Assistant Managing Editor Rich Kimsey

Photo courtesy of google.com

Editorial Board Money and Investing Bryan Murawski Stillman News Ryan Garrity Ethics David Guzik Editorials Anthony Crisci Sports Travis Tosoni Domestic News Morgan Tornetta

Assistant Editors Money & Investing Jennifer Crowe Stillman News Beverly Makarios International News Raphael Baseman International Business Alexandra Hauenstein

Faculty Advisers Michael Reuter, M.B.A. E-ma il stillmanexchange@shu.edu Website www.stillmanexchange.com Twitter stillmanXchange Fa cebook The Stillman Exchange

International News Kaitlin Tonti International Business Alex Cohen About The Stillman Exchange is the first undergraduate published business newspaper in the United States. The Stillman Exchange is published on a bi-weekly basis from the Center for Securities Trading and Analysis in the W. Paul Stillman School of Business at Seton Hall University.

Contact Alexandra at alexandra.hauestein@student.shu.edu

Bloomberg vs. Irish

The Official Business Publication of Seton Hall University

Executive Board Managing Editors Lee Duan Margaret Reilly

services that only women need is discrimination and thus not in line with international human rights law obligations.

I understand that Argentina is not the worst case of international law violations or of women being denied the right to make reproductive decisions, but what makes this case interesting is how unexpected it is.

There is no doubt that family planning is a highly controversial issue, but these are preventable deaths occurring in a state that is modern by all other accounts.

When United Nations Secretary General Ban Ki-moon visited campus in November, he highlighted his belief that the key to meeting the Millennium Development Goals was empowering women. Without the ability to make family planning decisions, women have unequal opportunities to education and employment, perpetuating the cycle of poverty.

Women are dying in Argentina because they do not have access to contraceptives and the alternative–an illegal, unsafe abortion–is dire. The reality of women’s rights in Argentina shows that international human rights treaties need stricter compliance mechanisms, because without enforcement, they are only symbolic commitments.

By Anthony Crisci, Editorials Editor The American Irish Historical society met last week in celebration of their new book release about the St. Patrick’s Day parade. The atmosphere was very cheerful until the guest of honor, Mayor Michael Bloomberg, began giving his speech.

Bloomberg began his speech off the right way, promoting Irish American pride and the notable March parade. Bloomberg simply stated “before I came here, normally when I walk by this building, there are a bunch of people that are totally inebriated hanging out the windows and waving”.

With the utter dismay of the crowd the New York City mayor continued on the course of stereotyping the Irish, “I know, that’s a stereotype of the Irish, but nevertheless. We Jews from around the corner think this”. This remark landed the Major a mix of laughs and boos, as many saw Bloomberg stating the stereotype that the Irish are always drunk and hanging out of windows.

Mayor Bloomberg has had a couple other moments where his words have not been responded to positively. This time, the majority of the reactions were negative.

“Given the mayor’s long history of support for the Irish community, his remarks last night were both surprising and inappropriate,” said Christine Quinn, the top Irish-American official, who did not

attend the event celebrating publication of a book about the 250th anniversary of the St. Patrick’s Day Parade.

Bloomberg was definitely wrong for his statements made against the Irish, and, as a public figure, should have never said what he did. The truth is that no matter what stereotypes exist, they are still very offensive. Bloomberg came out later in the week and apologized for his statements, but why are the statements so wrong? The mayor repeatedly said he was trying to have “good fun” at the book event and never meant to degrade anyone.

As an Italian-American, it is easy to see where the Irish are coming from. Most people categorize my heritage as the type to get involved in organized crime around the nation. As soon as one says that they are working construction and their name just happens to end in a vowel, the type casting begins.

The Irish are a people that are known to drink and sometimes get a bit out of control, just like in many other cultures. This does not mean every Irish person in America is “drunkenly hanging out of windows” like Mr. NYC proposed.

Unfortunately, certain stereotypes are so strong that an entire population is portrayed in a specific light.

Stereotypes should not be alive in this sense, but there are times when people need to grasp reality and understand that they will always be around. The fact is that there were probably events taking place in the building where heavy drinking did take place, and there could have been some outof-control behavior. Yet, these stereotypes should never be proclaimed to a giant audience by a great public figure.

Contact Anthony at anthony.crisci@student.shu.edu

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TUESDAY, FEBRUARY 15, 2011

Sports Business

THE STILLMAN EXCHANGE

Rodgers’ Endorsements To Soar Following Super Bowl Win

By Brittany Hammer, Sports Business Writer

Photo courtesy of Sports Illustrated

Even with the thrill of this past NFL season fading away and people focusing their attention elsewhere, Green Bay Packers quarterback Aaron Rodgers is busier than ever.

After leading his No. six-seed Green Bay Packers to a Super Bowl victory, and also collecting MVP honors for the title game, Rodgers certainly boasts a solid foundation for the marketing world which awaits him.

Various advertising and entertainment firms have nothing but praise for Rodgers, as his immense potential flashes dollar signs. According to a pre-Super Bowl report constructed by Bob Dorfman of Baker Advertising, Rodgers is considered one of the most marketable players in the game.

Rodgers’ three touchdown passes in the Super Bowl thrown in front of the largest TV audience in history - didn’t exactly hurt his image. Dorfman forecasts a bright future for the young quarterback, predicting Rodgers to gain roughly $3 million in endorsements if he pursues the various opportunities already thrown his way. Quarterback Drew Brees experienced similar success after leading the New Orleans Saints to a Super Bowl victory in 2010.

“You’re looking at the next up-and-coming guy in the NFL,” says Doug Shabelman, president of Burns Entertainment. “He’s got a winning smile and a terrific franchise behind him.”

With the recent shower of attention falling in his direction, Rodgers will contend with the likes of Peyton Manning

and Tom Brady for the advertising spotlight. Manning, considered to be the most successful endorser in the league, earns as much as $14 million a year through his endorsement deals.

“We’ll likely see a lot of Aaron Rodgers in terms of his marketing opportunities,” adds Shabelman. “He took over a storied franchise and put it in the limelight.”

And Shabelman couldn’t be more right – Rodgers already has an incredibly busy schedule. He already has an “I’m going to Disney World” commercial airing, and he has also donned the infamous “milk mustache.” Rodgers has even flown to New York and filmed an episode of CBS’ “Late Show With David Letterman.”

Both Shabelman and Greg Busch, executive vice president at GMR Marketing, say Rodgers presents a wholesome image, bound to attract major endorsements.

Busch believes that Rodgers’ “cool factor” will do wonders in attracting brands that target the younger demographics – including Nike. Already a paid Nike endorser, Rodgers is expected to be featured in upcoming Nike campaigns.

Rodgers’ recent on-field success and personal appeal has finally caught the eye of major companies, who are lining up to strike endorsement deals with the quarterback.

Endorsers want to associate with Packers’ star QB Rodgers even more after his stellar performance at the Super Bowl.

Contact Brittany at brittany.hammer@student.shu.edu

California-Berkeley Faces Title IX Dilemma Photo courtesy of UC Berkeley

Rugby was one of the five athletic programs originally slated to be cut at California-Berkeley.

By Robert Szeluga, Sports Business Writer The University of California has experienced yet another shakeup in its athletics programs. Last year’s cuts of five athletic programs have been found out of compliance with Title IX requirements. Now, the university may be forced to reinstate these programs, if provided adequate funding by

private donors. The five sports that may be reinstated are the men’s and women’s gymnastics teams, women’s lacrosse, baseball, and rugby.

Last year, Cal cut these five programs after heavy criticism by faculty and alumni over university spending. The move cut the number of athletic programs to 24, affecting an estimated 163 student-athletes and 13 full-time coaches. The most surprising cut

was that of the rugby program, which had Photo GoldenBearSports.com won 25 courtesy national of championships in the past 30 years.

With the cuts of both the women’s gymnastics and lacrosse teams, the university finds itself out of compliance with Title IX requirements which state that there must be an equal percentage of female athletes as male. Cal currently has 965 active studentathletes, only 40 percent of which are female. To meet Title IX requirements, it would have to cut 80 spots for male athletes and add another 50 spots for female athletes.

Cal has not made a formal announcement regarding their solution to the compliance issues, but the university does have several paths it can take. One solution is to trim the size of male rosters while expanding the roster size of the female programs.

Possible men’s programs that may see future cuts include water polo, crew, and football.

Another option is to reinstate the five programs that were recently cut. When the cuts were originally made, Cal announced that it would take at least $80 million in private donations to reinstate the programs.

Now the university has lowered that offer to

$25 million. The university additionally stated that supporters would need to demonstrate a long-term plan to finance the teams for the reinstatement to happen.

One final option is for the university to cut additional programs in a way that would even the male to female ratio. With the public outcry that has already ensued over these cuts, this option is highly unlikely.

On February 11, school representatives announced that three of the athletic programs that were scheduled to be dismissed will not be cut at year’s end. Rugby, along with women’s lacrosse and women’s gymnastics no longer face being terminated, thanks to proceeds from various fundraisers.

The programs will operate on these new funds for the immediate future, while the school attempts to find a way to keep the programs running long-term. Keeping both women’s programs will make The University of California compliant with Title IX requirements.

Contact Robert at robert.szeluga@student.shu.edu

Foot Locker, T-Mobile Back NBA All-Star Game

By Tony Cramond, Sports Business Writer On February 8, the National Basketball Association and Footlocker announced a multiyear extension to their current partnership. This would keep the athletic apparel retailer as the title sponsor of the Foot Locker Three Point Contest, which Footlocker has sponsored since 2004.

The three point competition has been one of the major events of the All Star weekend since 1986. It brings together six of the best 3-point shooters in the league to see who is the ultimate “sharp shooter”. This year Footlocker is sponsoring a “3 for 3 Sweepstakes”; a contest which includes cash prizes and coupons to Footlocker locations.

This event will be promoted during the All Star weekend and also at Footlocker

locations nationwide. Footlocker is using its sponsorship of this event to help advertise the giveaway, and obviously to attract more customers.

T-Mobile is also getting involved in the All Star weekend festivities. T-Mobile, for the first time, is going to headline the All Star celebration this year. The company is responsible for the for a huge red carpet event, where celebrities for film, television, and music will all be making an appearance.

Also, T-Mobile is having musical artists Bruno Mars and Keri Hilson perform during the event. T-Mobile is calling it the T-Mobile Magenta Carpet event and full coverage of the event will be available through NBA TV. They have also created a state of the art lounge area called the magenta lounge and it will be available to all of the celebrities and past NBA stars who will be at the All Star

weekend. This lounge will contain an array of T-Mobile phones and products.

There will also be a tour of the lounge during the coverage of the All Star weekend events.

T-Mobile, which is now the official wireless sponsor of the NBA, will now be the title sponsor of the Rookie Challenge and Youth Jam. This event features the best rookies in the NBA playing a game against the best second year players.

T-Mobile is also an associate sponsor of the NBA Celebrity All Star Game and also sponsored the NBA All Star Balloting, which helped determine the starting line ups of the All Star game.

Contact Tony at anthony.cramond@student.shu.edu

Footlocker and T-Mobile have signed on as official sponsors of the NBA All-Star game.

THE STILLMAN EXCHANGE

Sports Business

TUESDAY, FEBRUARY 15, 2011

11

Lightning Look to Build New Culture Through Rebranding

By Tony Bonkalski, Sports Business Writer The Tampa Bay Lightning has not only transformed their team on the ice by becoming one of the best teams in the NHL, they also changed their physical appearance as well.

The Lightning recently presented their redesigned uniform for next season. This jersey is not the usual futuristic look that many teams are turning to, but instead they went to a classic, traditional take on their look.

The new jerseys may not turn heads, but according to Steve Yzerman it is one move in a long term goal to become one of the most known franchises. He stated, “The long-term goal is for the Lightning to be an iconic franchise, rich in tradition with championship values and a strong legacy.”

Creating the new design was no easy task. The path to ultimately rebranding their franchise was filled with various sketches for both uniforms and crests for the team.

On the road to the new, classic blue-and-

Photo courtesy of Tampa Bay Lightning

The Lightning moved to a more traditional look.

white design, many images were discarded and new, futuristic ideas did not turn heads from the ownership. Tampa Bay’s classic look was reminiscent of the uniforms from the NHL’s original six teams.

The two color look for the jersey made the Lightning the third team in the league to use only two colors. The other two teams were the Toronto Maple Leafs and the

A d id a s , S p ain R eu p Th rou g h 2 01 8

By Anna Negrón, Sports Business Writer Being the 2010 FIFA World Cup winners pays off—literally. Adidas announced that they would be extending their sponsorship of the Spanish Football Federation until the end of 2018, a partnership that dates back almost 30 years.

With this sponsorship, Adidas will provide official apparel to the Spanish men’s national team at all levels, including under17 and under-19, until the 2018 FIFA World Cup. The previous agreement was said to last until 2014, but Adidas decided to renew it early. Herbert Hainer, CEO of the Adidas Group, stated “We are very proud and excited to announce the extension of our successful partnership with the Spanish Football Federation RFEF. Adidas is the global leader in football and Spain is currently the strongest team in the world which makes this partnership a perfect fit. We are looking forward to continuing our successful partnership and to supporting the Spanish Federation in their future successes.”

Angel Maria Villar, President of the Spanish Football Federation, followed by saying, “We are really glad to have Adidas as our official sponsor. This agreement allows us to count on the support of Adidas,

which is without doubt the leading football brand. We are going to continue our partnership with them to support the world of football in every aspect.”

With the support of Adidas, the men’s national team is given recognition for their outstanding performance at the 2010 FIFA World Cup, as well as motivation to continue with their recent successes. According to Sports Pro Media, the extension is said to be worth $261.84 million dollars over the next 8 years. Adidas also increased its yearly commitment from $27.3 million to $32.73 million per year.

Adidas recently posted their new commercial for Spain on their YouTube channel.

The commercial states “we fought together, we suffered together, we cried together, we dreamt together, and together we conquered the world,” describing the relationship that Adidas and Spain truly have as partners.

Adidas is using the slogan “30 años juntos,” which means 30 years together, to endorse the newly announced extension.

Following the announcement of the extension, Spain scored in the 86th minute to defeat Colombia 1-0 last Wednesday evening. This was their first win as world champions.

Contact Anna at anna.negron@student.shu.edu

Detroit Red Wings.

Originally the discussions between the owners were not going well and they could not see eye to eye on an idea for the uniforms, but eventually they came to an agreement on the original looking jersey.

The main goal for the team was to find something that would be an icon for years to come.

Ed O’Hara, the chief creative officer for SME Branding, the firm in charge of making the design for the new uniforms felt the team needed more of an iconic and classic look.

All of these attributes are exactly what they found in their new uniforms.

The new uniforms were unveiled as only the beginning to a project that looks to transform the entire look for the Lightning.

The plan includes a $2 million a year charity campaign, a program that allows season-ticket holders to receive a sweater that would let them get food and merchandise discounts, and finally a renovation to their home arena, St. Pete Times Forum.

All of these changes may take time, but the goal for the Tampa Bay Lightning franchise is to create an icon in which fans everywhere will realize the impact that the franchise can have.

Contact Tony at antonio.bonkalski@student.shu.edu

Marvel Comics and NBA Team Up for Clothing Line

By Scott Kim, Sports Business Writer Perhaps seeing the popularity of Dwight Howard’s persona of “Superman” grow ever since he decided to dawn the Superman cape and shirt when he embraced the hero at the dunk-contest back in 2008.

Maybe it was just a match made in heaven that was bound to happen eventually due to the fact that children sometimes look up to NBA athletes as superheroes themselves, but for whatever reason, the National Basketball Association and Marvel Entertainment LLC have joined forces.

Come All-Star weekend the two associations will be launching a new line of clothing that includes T-shirts, caps, and sweat shirts that will bring together teams such as the Knicks and Spiderman and the Celtics and Hulk.

They are not just trying to be random about the pairings either. These two pairings in particular have been chosen because Spiderman has always been associated with New York City while the Hulk is obviously the most famous green superhero ever so why not pair him with the Celtics?

Marvel entertainment’s president of consumer products for North America Paul Gitter was also quick to point this out as told

to the Associated Press, “We decided, for instance, it makes the most sense for the Knicks to have SpiderMan since he's associated with New York City. When you look at characters such as the Hulk, you look at Green and you think Boston Celtics. There is a method to the madness.”

Other superheroes such as Captain America, Thor, and Iron Man will be shown dressed in NBA colors rather than their typical costumes.

The new clothing line will be including headwear created by New Era as well as shirts and sweat shirts by C-Life, ranging from infant to adult size. Marvel hopes to expand this partnership beyond strictly clothing to include new sporting goods as well.

The NBA’s senior director of appareling for one thinks it will work and points out that Marvel’s history of comic books “gears toward children and young kids, and we like that as well, particularly the teamwork and having superpowers (and) we can tie that back to how our players are.”

Contact Scott at william.kim@student.shu.edu

Jersey Advertising Value Worth Roughly $370 Million

By Travis Tosoni, Sports Business Editor In a new study regarding the implementation of advertisements on sports jerseys, it has been discovered that the four major sports leagues in North America are foregoing roughly $370 million annually by choosing to not put advertisements on team jerseys.

The tests were conducted through the use of a computer program that detected the front of teams’ jerseys. The program assumed endorsers logos located on the front of a team’s jersey.

And then calculated the amount of exposure the target area received during a television broadcast. The tests calculated the exposure time for the NFL, MLB, NBA, and NHL. The final report revealed the value that the jerseys of each sport would contain.

Topping the list was the National Football League, with jersey values totaling $231 million, due to the sport’s high television and advertising rates. Baseball’s value was $101 million, while basketball and hockey posted rather low totals, $31 million and $8 million respectively.

Despite football’s jerseys having the highest value, the nature of the sport does not provide an ideal environment for jersey advertisements.

Players are often bunched together during play and during huddles. This means there is little quality exposure time for the ads to be seen clearly. Baseball is the sport that provides the highest amount of detection opportunities for advertisements, due to its relatively slow pace and breaks in action.

Also, the wider array of camera angles the sport provides offers greater opportunity for exposure.

The study also took into account the

Photo courtesy of EA Sports European sports jerseys sporting corporate ads.

amount of national television exposure team’s would get. These numbers were estimates, not actual proven data. Football’s three most nationally exposed teams were the Dallas Cowboys, New England Patriots,

and the New York Giants. MLB’s top three teams were the New York Yankees, Boston Red Sox, and New York Mets. The Los Angeles Lakers, New York Knicks, and Boston Celtics were the NBA’s top three teams, while The Chicago Blackhawks, New York Rangers, and Pittsburgh Penguins topped the NHL. While one should not expect these sorts of advertisements to appear anytime soon, it is a very successful way to generate additional revenue for the four major leagues and their respective teams.

European soccer and hockey teams have seen success with this sort of advertising, and sports leagues in North America may be inclined to follow their lead in the future.

Contact Travis at travis.tosoni@student.shu.edu

12

Sports Business

TUESDAY, FEBRUARY 15, 2011

THE STILLMAN EXCHANGE

Manchester United Expands Operations Due to Increased Commercial Success

By Anthony Holesworth, Sports Business Writer Manchester United, the English Premier League soccer club, is expanding its London commercial operations to Mayfair, in London’s West End. This move was forced into action by the club’s skyrocketing commercial success and popularity.

The entertainment industry has always been a money maker in our world. For thousands of years, one of the most popular forms of entertainment has been sports. With its constant growth of popularity, the sports industry has become one of the most lucrative industries in the entire world. Through the years, sports franchises, like the MLB’s New York Yankees and the NBA’s Los Angeles Lakers, have seen major success and, consequently, high demand of merchandise.

With soccer’s rapidly-growing popularity in America, and its consistent worldwide relevance, it was only a matter of time before a foreign soccer franchise saw significant commercial success similar to teams like the Yankees and Lakers.

Photo courtesy of Andre Zahn Manchester United has signed many lucrative sponsorship deals in the last several years.

There are many factors which ultimately led to the worldwide success Manchester United is experiencing today. Man U is one of the most storied and historically-successful English soccer clubs. Since its creation in 1878, the club has won eighteen league titles, eleven FA Cups (Football Association Challenge Cups), and four League Cups.

This success is rivaled by few other soccer clubs in the world.

Another major factor in Manchester United’s commercial growth was the clubs relationship with David Beckham, one of the most popular soccer players of all time.

Beckham was a member of Manchester United from 1992 to 2003. It was with Man U that he attained his incredible level of global celebrity status. From a business perspective, one of the most obvious results of Beckham’s worldwide popularity was a

major increase in Man U’s jersey sales.

More broadly though, Beckham’s popularity with Asian and American soccer fans helped garner a strong international fan base for the club.

Over the years Man U has been sponsored by a wide range of commercial giants, from Japan’s Sharp Electronics to Germany’s Adidas sportswear company. In June of 2009, the club signed a $30 million jersey deal with Aon, an American insurance company. This sponsorship was, at the time, the most lucrative shirt sponsorship contract in the history of soccer.

Manchester United’s expansion to Mayfair marks the club’s third major expansion in the past several years. This continued growth marks Man U’s increasing commercial success. Furthermore, the club’s fan base has attained a worldwide status, with fans from England to Japan to America. In terms of commercial expansion, the sky is the limit for Manchester United as a franchise and as a brand.

Contact Anthony at anthony.holesworth@student.shu.edu

LeBron James Swisher’s Use of Social Media Further Increases His Appeal Set to Discuss Labor Issues During All-Star Weekend

By Matt Bartel, Sports Business Writer

By Roger Goldfond, Sports Business Writer Miami Heat forward and two-time reigning NBA MVP will be headed to AllStar weekend in Los Angeles, but he will be doing much more than just playing. LeBron has reiterated that he will be a part of the discussions about the league’s future. “'I’m not just going out there for the game,” LeBron said. “I’m definitely going out there for business. I will be a part of the labor talks. Even though it's a huge game going on Sunday, there's a lot of business that needs to be taken care of, too.”

The NBA’s collective bargaining agreement is set to expire on June 30, and there is widespread concern around the league about a lockout and possibly a disrupted 2011-12 season. The NBA has said it expects a loss of about $350 million this season, and Commissioner David Stern has said in October that team owners hop to reduce player salary costs by about $750 to $800 million annually. Little progress has been made toward a new collective bargaining agreement in the past year.

Each team has a player representative that will be at the All Star Game, and it is not LeBron James who will be representing the Heat. That position is held by 3-point contest competitor James Jones, but that will not stop LeBron, “I’m going to listen a lot, because it's not like I'm there on every conversation or every phone call that they have,” James said. “'I don’t know all, but as a player, as a person of this league, I know a lot about this league. If I feel like a comment needs to be said from me, I've never been one to hold my tongue. So I'll definitely voice my opinion.”

Being one of the league's highest-paid players, LeBron has an opinion worth roughly $110 million, and he plans on sharing his thoughts with whoever will be willing to listen.

Contact Roger at roger.goldfond@student.shu.edu

Already a fan favorite of the New York Yankees, Nick Swisher has made himself even more transparent and marketable through the use of a Twitter page, that now boasts over 1.2 million followers and counting.

The thirty year-old Swisher was signed as a free agent before the 2009 season and enjoyed immediate success as the every-day starter in right field during the Yankees’ World Series championship run.

That same season, the Yankees set a team record for walk-off victories in a single season, each dramatic win concluding with the key member of the victory receiving a shaving cream “pie” to the face during their postgame interview, courtesy of team prankster Swisher. For his actions, Swisher received a full page cartoon in the New York Post during that season’s playoffs depicting him as the popular Batman character “The Joker”.

These antics, as well as his overall loose and fun nature, make Swisher fall outside of what the “Yankee Code” considers “normal”, but that is his appeal. And it is working.

In the 2010 All-Star game held in Anaheim, California, Swisher was among the finalists to receive their spot on the roster via the annual “Final Vote”, where fans are given the choice of five players (as chosen by each league’s manager) to earn the last spot on the All-Star roster.

Swisher, who was the most followed on Twitter among the candidates, was able to edge out Kevin Youkilis, the first baseman of the rival Boston Red Sox, in what was the closest “Final Vote” ever according to Major League Baseball’s website.

The ever-popular Swisher uses Twitter to not only market himself, but also to promote his own charity organization “Swish’s Wishes”, which helps ailing children and their families during their time of need. Nick Swisher has been able to paint a positive portrait of himself since his arrival in New York, and through the use of

Photo courtesy of Sports Illustrated

Swisher has brought a more fun-loving attitude to the New York Yankees.

social media he should be able to continue to maintain a likable persona as well as garner fans from around the country.

In a game where players are put on a pedestal, Swisher just wants to have fun and play ball, and through the use of social media anyone who wants to can be along for the ride.

Contact Matt at matthew.bartel@student.shu.edu

Formula 1 Team Looks to Investors to Gain Competitive Edge

By Peter Brett, Sports Business Writer In an attempt to better compete with wealthier rivals, the Formula 1 motor sport team Williams Grand Prix Holdings PLC has set a price range for a stock-market listing that would value the company at close to $395.4 million.

The team based in the United Kingdom has struggled in recent years after decades of dominance. In the 1980s and 1990s, Williams was the most successful team in Formula 1 racing. In the past decade teams like Ferrari, McLaren, and Red Bull have overtaken Formula 1, boasting immense budgets and world-class drivers and technology, while Williams has struggled to attract investors and a successful partner to provide engines.

Williams Grand Prix Holdings PLC has expanded into Germany in hopes it will attract a wider range of investors. The team’s founder, Frank Williams, is the majority shareholder of Williams and team principal of the AT&T Williams team. In a statement, Williams explained his stance on the listing, “Our future as an independent constructor is sustained by this listing, providing us the base from which to further grow.”

By listing in a country like Germany, which is renowned for producing Formula 1 champion drivers and cutting-edge racing technology, Williams hopes a new group of interested investors will materialize.

On March 2, the shares will be introduced on the Frankfurt Stock Exchange and listed between €24 and €29. Roughly 2.7 million of the team’s 10 million total shares will be available for purchase.

Williams Grand Prix Holdings has not won the Formula 1 title since 1997, and championship droughts of this length really hamper smaller teams, who rely heavily on winnings and prize money for revenue and financing. Larger formula 1 teams that are primarily financed through major corporations essentially have an unlimited budget, so they are afforded the luxury of not relying primarily on prize money to finance operations.

Frank Williams hopes this listing will expand the team’s budget with the aid of new investors, as well as find a partner to produce high-quality engines.

Contact Peter at peter.brett@student.shu.edu

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 15 , 2010

Domestic News

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NOAA, Federal Government Set Aquaculture Guidelines

By Malissa Abrams, Domestic News Writer On Feb. 9, the federal government issued guidelines for aquaculture policy formulation and implementation. These new policies allow farm-raised seafood to be produced in the nation’s waters as long as the operations do not endanger the sub-populations of wild fish or saltwater ecosystems.

National Oceanic and Atmospheric Administration (NOAA) released the guidelines. They set general standards for regional fishery management councils to use while developing fishery management plans and management measures.

Marine aquaculture plays a key role in producing food globally. The majority of seafood that Americans eat—84 percent of it—is imported. Nearly half of the seafood imports are produced by aquaculture.

American aquacultural efforts make up only 5 percent of the seafood consumed by Americans.

“Americans love seafood, and we consume approximately 5 billion pounds of it each year—a significant portion of which are imports,” Commerce Secretary Gary Locke said. According to Locke, the trade deficit for seafood imports is currently $9 million.

This form of food production is said to provide safe, healthy seafood. It will also create employment and business opportunities and spur new innovations in technology.

In the last decade, the U.S. assisted in the development and advancement of aquaculture abroad. The finalized Commerce

Photo courtesy of NOAA

Aquaculture in the U.S. produces five percent of domestically consumed seafood, a small percentage of all the seafood consumed.

and NOAA policies will lay a platform for sustainable aquaculture within the country.

The director of the aquaculture program at the Ocean Conservancy, George H. Leonard, considers the draft guidelines “a step in the right direction.”

In 2009, NOAA imposed an aquaculture plan proposed by the Gulf of Mexico Fishery Management Council, which monitors fishing in the gulf. In absence of a for-

News Briefs Giffords Speaks A month after the January 8 shooting at Tucson, Arizona where Rep. Giffords was shot in the head, she has begun speaking. Even though doctors are cautious about all the neurological and speech obstacles that still lay ahead, Rep. Giffords proves once again that she is still a fighter.

With the help of intense daily therapy, Rep. Giffords has started talking. Even though Rep. Giffords still has a long road of recovery, she is showing daily signs of improvement. Doctors have not disclosed what Giffords said, or how much. "The doctors say she is recovering at lightning speed considering her injury, but they aren't kidding when they say this is a marathon process," Kelly Giffords said in a Facebook post Tuesday.

Sparky off for Higher Education Sparky, a deaf dachshund, has found a new home with the students from Missouri School for the Deaf. But before he was able to join the class, Sparky had to do his time in the South Central Correctional Center’s Puppies for Parole Program. This program uses inmates to train animals with special needs in order to make them more adoptable, and Sparky is one of their success stories. The inmates used hand signals to train Sparky to sit, heel, lie down and stop.

Lucky for Sparky his education didn’t stop there; the correctional center arranged for him to be transferred to the Missouri School, where he is learning hand signals for “outside” and “food”. The transition was such a success that Petie, a deaf Boston Terrier is set to follow in Sparky’s footsteps in the near future..

Heist Foiled by Closing On February 10 in Cranston, R.I. a man walked up to a Citizens Bank counter at a grocery store and handed the teller a ripped paper plate. Cranston police major, Robert W. Ryan, reported that on the plate was a scribbled message “This is a robbery”. After closing the security curtain, the teller told the man the bank was closing and then closed the security door. The empty handed would –be robber quickly walked away, and the teller called the police. The police are still looking for the suspect.

mal federal policy, officials found no reason to block it. Officials at NOAA said the plan at the gulf would be assessed in light of the new guidelines.

Also included in the guidelines is the requirement to research substitutes for wild fish as a form of diet for farm-raised fish.

The goal is to minimize the impact on the ecosystem.

In addition, the guidelines implement

on banning fish farm stocking in the presence of nonnative fish until it is proven that no harm will be done to wild species, habitats or ecosystems, if ever they were to escape.

In other countries, however, marine aquaculture operations have been regarded by environmentalists and researchers as a contributor of pollution and disease among wild fish.

In an effort to improve the food production for Americans, Commerce and NOAA are accepting comments in regards to the draft policies through April 11. Once the comments have been submitted and reviewed, Commerce and NOAA will issue the final policies.

Several points in the draft policies support President Obama’s National Ocean Policy, including the need to protect, maintain, and restore ecosystems, acquire of sustainable uses of the ocean and better educate Americans in science in hopes of making better decisions.

Marine aquaculture is a fast growing method of farming marine organisms such as fin fish, shellfish, and algae in order to produce food. Other processes in producing aquaculture products are restoring the habitat and rebuilding wild fish stocks.

The major concern with wild fish stocks is that they are under threat globally.

Aquaculture in the U.S. and overseas is noted to take a growing share in the market for fish.

Contact Malissa at malissa.abrams@student.shu.edu

High Rail Spending Plans Called Spending Nightmare by Some

By Connor Carragher, Domestic News Writer Another political battle is headed to Congress after President Obama proposed in his State of the Union address that the federal government should allocate over $50 billion for high speed rail production in the next six years.

“To attract new businesses to our shores, we need the fastest, most reliable ways to move people, goods, and information -- from high-speed rail to high-speed Internet,” Obama said in his State of the Union address.

Vice President Biden unveiled a plan on Tuesday, Feb. 8 to upgrade intercity railway networks.

Proponents of rail travel argue that the industry will revolutionize transportation in the United States, but fiscally conservative lawmakers doubt the country has the means to finance such a project.

Although the president did discuss a plan for cutting some federal spending in the coming years, he told the American people in his yearly address that high speed rail and clean energy need to be priorities.

Some states are already planning to install the infrastructure for high speed rail travel. Lines have been established from Sacramento to Los Angeles, Cleveland to Cincinnati, and Chicago to St. Louis. Now the states need the money to provide the

projects to the people.

Washington state transportation secretary Paula Hammond said in a prepared statement, “Washington’s future economic competitiveness is threatened by increased highway congestion and declining roadway conditions. A recovered economy will depend on an integrated transportation system that works for everyone.”

One of President Obama’s political commitments is to protect the environment. In addition to the reduced carbon footprint, the president projects that putting the rail lines in place will generate thousands of new jobs for the sputtering economy.

Last year, Obama put an $8 billion down payment on the rail system.

Conservatives in Congress do not share Obama’s optimism for the new transportation plan because of budget strains. Republicans claim that the current budget crisis should prevent any non-essential spending.

“Government won’t help develop American high-speed rail,” Rep. Bill Shuster (R-Pa.) said. “Private investment and a competitive market will.”

New Jersey Governor Chris Christie thinks Obama’s priorities are misplaced. “The difference between me and the president,” he said, “is what we define as big things.”

Members of the Tea Party especially want to slash millions from federal spending this year alone. For

some Republicans, the focus this year will be more on job production than budget control.

Nonetheless, these members of Congress oppose the rail system.

They say that with most transportation programs, jobs are not generated until the later stages of the project.

Even at that point, employers will not hold on to the jobs for an extended period of time. Congressmen and senators are trying to come up with solutions that will address the issue of job security with transportation in the future.

“We all agree we need to cut spending to get the deficit under control,” Biden said. “When it comes to jobs, there are three key places where we cannot compromise. We cannot compromise on education, innovation or infrastructure.”

Now that the House of Representatives is controlled by conservative law makers, it will not be as simple to push federal spending through Congress for the president.

With more commitment from the states to assume the financial burden of some of the project, Congress may be more apt to consider Obama’s proposal. Until then, the high speed rail project will have to work its way through a highly divided legislature.

Contact Connor at connor.carragher@student.shu.edu

14

TUESDAY, FEBRUARY 15, 2010

Domestic News

THE STILLMAN EXCHANGE

Butts Out: Smoking Banned in Win the Future Plan Begins Certain Public Areas in NYC with Energy Efficient Buildings

By Ellys Thynne, Domestic News Writer On February 2, a vote passed 36-12 by the City Council of New York made it illegal for cigarette smokers to light one up in parks, beaches and public plazas, including Times Square and Union Square.

The ban will impact 1,700 parks and 14 miles of beaches and boardwalks.

This new measure will go into effect 90 days after Mayor Michael Bloomberg signs it. It is one of the widest reaching urban bans, according to the Associated Press.

Since Mayor Bloomberg enacted the New York City Smoke-Free Air Act of 2002, other major cities across the United States have adopted similar policies.

Cities including Los Angeles and Chicago have also put into effect laws preventing smoking in public places.

Studies connecting cigarette smoke with diseases such as cancer and emphysema have caused anti-smoking lobbyists to persuade governments to enforce regulations aimed at promoting the health and safety of all citizens. Secondhand smoke is classified as a carcinogen by the U.S. Environmental protection agency.

Councilwoman Gale Brewer, the bill’s main sponsor, said she expects the law to be primarily self-enforced by the public.

Although offenders can receive a citation and a fine of up to $50, the smoking ban will not be enforced by the NYPD, compliance relying solely on public pressure.

The mayor agrees.

“The police will not be inforcing this,” Bloomberg said on a radio show. “This is going to be inforced by public pressure.

Mainly it’s just everybody’s going to turn to you and say, ‘Hey, you shouldn’t be smoking.’”

Mayor Bloomberg said that “This summer, New Yorkers who go to our parks and beaches for some fresh air and fun will be able to breathe even cleaner air and sit on a beach not littered with cigarette butts.”

Photo courtesy of Life

This smoking ban is the latest in a series in New York, banning smoking in places like Times Square and the coastline.

Seton Hall sophomore Jenna Mason says, “It’s a good thing. When people smoke it affects everyone around them. It gets annoying when you have to walk through clouds of smoke, it’s disgusting.”

This new policy will be more acceptable to some than others. Non-smokers have their rights and some feel as though they are being violated.

Critics say imposing such bans violate the individual liberties of smokers. One anonymous student who is a frequent smoker argued that “a ban on smoking indoors makes sense, but you should be able to smoke anywhere outside.”

While these new strategies aimed to combat health risks attributed to cigarette smoke may encroach on the rights of those who chose to smoke, they may also reduce the amount of people admitted to hospital for heart attacks.

Contact Ellys at ellys.thynne@student.shu.edu

By Fred DeRitis, Domestic News Writer On Thursday, Feb. 3, Obama announced tax breaks aimed at getting building owners to make their buildings more energy efficient.

While at Penn State University on a tour of labs working on developing energy efficient technology, Obama said, “Making our buildings more energy-efficient is one of the fastest, easiest and cheapest ways to save money, combat pollution and create jobs right here in the United States of America.” As part of his new “Win the Future” campaign, President Obama hopes that step toward energy efficiency will ultimately keep the United States more competitive in the long term.

The program itself is a group of incentives designed to entice the private sector into investing in older buildings in order to make them more energy efficient.

According to ABC News, President Obama used an “extreme example”, to show the benefits of such a program: The owners of the Empire State Building finished investing money in measures that would make the building more energy efficient.

Their investment would pay for itself as the new energy efficient measures will save the owners $4.4 million each year.

In order to continue this trend, investors retrofitting these older, commercial buildings will be assisted by measures that will promote loans to pay for the upgrade for these buildings, and also extensive tax breaks to cut down on the cost.

Ultimately, the White House would like to see the energy efficiency of commercial buildings increase by twenty percent by 2020.

In addition to these measures, Obama is trying other measures including a program designed to entice state and local governments, through a competitive grant mechanism, to upgrade their buildings.

The real question remains whether or

not these measures will pass through the new, Republican controlled Congress.

While a spokesman for Speaker of the House John Boehner assured reporters that Republicans supported energy efficiency, many Republican leaders still have questions about the details, including the cost of the new programs.

Photo courtesy of the Associated Press

Obama is offering incentives for building owners to complete energy efficient retrofitting.

The administration, however, is not ready to disclose the details of the program, with a senior official telling the Wall Street Journal, “There is a lot of information in the budget and it will be out in due course.”

Obama has been clear on his plans to raise the taxes on gas and oil companies in order to pay for these new programs.

President Obama told reporters in respect to the gas and oil companies, “They’re doing just fine on their own. It's time to stop subsidizing yesterday’s energy. It's time to invest in tomorrow’s.”

Contact Fred at fred.deritis@student.shu.edu

Appearance of GOProud Shows Rifts in Party Politics

By Alina Ivette Fernandez, Domestic News Writer The attendance of GOProud, a conservative organization that seeks to represent homosexuals and their allies, at the annual Conservative Political Action Conference (CPAC) was a point of much contention and division within the Republican Party.

CPAC, a creation of the American Conservative Union, is the largest annual meeting of conservatives and invitations are reserved for prominent individuals within the party. By inviting representatives from GOProud, CPAC administration highlighted a growing divide within the GOP base over the rights of homosexuals.

Lines were drawn, and positions announced. Several important conservative groups, including the American Family Association, the American Principles Project, the Media Research Center and the Heritage Foundation have refused to attend the conference because of GOProud attendance.

In response to these and several other conservative organizations’ decisions to boycott CPAC, South Carolina Senator Jim DeMint did not attend, but his spokesman Wesley Denton told CNN that “[DeMint] hopes to attend a unified CPAC next year”.

The absence of such a high profile Republican leader highlights the significant ideological differences that separate the rebranded GOP. In response to the boycott, Christopher Barron, chairman of

Conservative groups are boycotting CPAC because of the look of GOProud, a gay rights group.

GOProud’s board, said, “[the boycott] is a complete and total unmitigated disaster for the boycotters.”

This rift was emphasized when some of the leading conservative activists circulated a memo that urged the founding principles of conservatism to be recast in order to exclude gay rights groups, including

GOProud, from the Reagan coalition of economic, defense and social conservatives.

Colin Hanna, president of Let Freedom Ring and one of the signers of the memo, said “The agenda of GOProud is fundamentally incompatible with virtually all social conservatives, so this isn’t diversity, it’s discord.”

The conference will feature remarks from, former Massachusetts Governor Mitt Romney, former Pennsylvania Senator Rick Santorum, and Minnesota Representative Michele Bachmann, who will be testing the waters for a possible presidential bid.

Political analysts, including Washington correspondent Todd Zwillich, believe the best course of action for the GOP at this moment is to unite and support a leading presidential candidate.

During a private interview, Marcel Lisi, who has served in the offices of Representative Kanjorski, Senator Casey and former Republican Senator Specter, he responded when asked about the GOP’s split over gay rights that “The issue of gay rights within the [Republican] party represents a conflict of values, some sides of the party are becoming more liberal, while others are remaining static.”

“Whether or not the party addresses this now or later remains to be seen,” he continued, “What I can tell you is that if either party fails to see the significance of public opinion on the issue of gay rights then they face alienating a growing segment of fellow voters who have vested interest in the issue.”

Contact Alina at alina.fernandez@student.shu.edu

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 15, 2011

International News

Three Months in Argentina: Student’s Adventure in South America

By Betsy Dudley, Guest Writer During the Fall 2010 semester I studied in Argentina where I learned about Argentine culture, the Spanish language, and most importantly, myself. Buenos Aires is like any metropolitan city in the U.S. There are a variety of people of all different shapes and sizes, and it reminds one a lot of New York with its tall buildings and busy streets. I spent many hours in class learning how gender, racial, and cultural roles evolved in Latin America, the evolution of Latin American political thought, and Latin America and Argentina’s role in the global economy.

Argentina is a unique country heavily influenced by Juan Peron, who was President from 1946 to 1955, and again from 1973 to 1974.

Peron was hugely popular with the working class because he improved their conditions.

He was also a member of the military and therefore popular with right-wing factions of the armed-services. Peron’s third term, after he returned from exile, was short and after his death, a military junta took over the state. This junta crushed political dissent by making people disappear.

The impact of the “desparecidos,” or, “the disappeared ones,” is still felt today. The significance of the junta is also felt in the Mother’s of the Plaza de Mayo, where for months mothers of the disappeared would march in the square, asking to know where their children have gone.

Today, almost all politicians still see themselves as Peronists. I was told by my professors that it is impossible to enter politics without being one. However, one can classify their selves as liberal or conservative and still be called a Peronist due to the inconsistency of his political programs.

In addition to Peronism, the 2001 to 2003 economic crisis has had a strong effect on Argentina. Nestor Kirchner became president in 2003 at the tail end of the crisis and helped stabilize the economy by renegotiating the IMF loans which Argentina had defaulted on.

Kirchner also improved relationships with other countries in Latin America such as Cuba and Venezuela, at the expense of its relationship with the United States. In 2007, Nestor Kirchner decided not to run for a second term and his wife won instead.

While I was in Buenos Aires, Nestor Kirchner died which led to three days of mourning at the Plaza de Mayo. Christina Fernandez de Kirchner is the current president; however, she is not very popular among the urban middle class and educated people in Buenos Aires and the cities. The Kirchners are popular with the poor and working classes as well as the Madres de la Plaza de Mayo, but all of my professors strongly dislike her.

Argentina has a serviced based economy; however, this type of economy is often problematic as the country is still growing and not placing enough emphasis on the agricultural and manufacturing sectors of the country.

Additionally, inflation is also troublesome.

In the five months I was there, something that cost 1.25 pesos increased to 1.50 pesos. While this does not seem like a large increase, for the working poor, the cost will eventually add up.

Argentina is a very interesting country and I hope to one day return. They have large amounts of resources and I hope the people and the politicians recognize their own potential for economic and social success.

Contact Betsy at elizabeth.dudley@student.shu.edu

15

Taiwanese General Arrested on Espionage Charges

By Wesley Satterwhite, International News Writer Taiwan’s Ministry of National Defense has arrested a high ranking military official on espionage charges.

Major General Lo Chen Hsien-che is accused of leaking information about Taiwan’s defense communication systems It was earlier reported by Taiwanese papers that Lo had leaked information on U.S. communication systems, yet these reports have been proven false by the Ministry of National Defense.

He was recruited by Chinese intelligence personnel in 2004, while he was posted in Thailand from 2002 to 2005 as a defense attaché.

Lo was placed under investigation last October and was detained on January 25. National security agents and military officials searched his office and residence seizing confidential documents. He is facing life imprisonment or the death penalty for treason.

Taiwanese officials were tipped off

by U.S. intelligence operatives based in Asia.

Lo’s alleged leak is the most serious espionage activity since the 60’s when a defense minister was arrested for being a Communist spy.

News reports had also claimed that Lo was posted in the United States at some time. An official from Taiwan’s representative office in Washington denied these reports.

Jung-feng Chang, former deputy of the National Security Council in Taiwan, downplayed Lo’s ability to reveal the program.

“The U.S. has very strict anti-espionage regulations, and I would be very surprised if Lo were able to get his hands on any critical information”.

The program is called Bo Seng, and

links air, ground and sea forces with command centers in Taiwan and U.S. Pacific Command. It was created by defense contractor Lockheed Martin and is worth $1 million.

According to Taiwanese media, Lo was recruited by a female Chinese spy who held an Australian passport.

The Australian reports that Lo was “lured” by her to gather information for China. She is described as a “tall, beautiful” woman in her 30s whose name has yet to be released.

The two met in the U.S. before Lo returned to Taiwan. She put him into contact with a more senior member of China’s intelligence service.

It has been reported that General Lo received $200,000 for his information.

Taiwanese media reports that Lo also received sexual favors from the Chinese agent.

He was last posted at the Army Command headquarters, where he worked in an administrative capacity. He was promoted to the rank of general in January of 2008.

The Ministry of Defense has set up a special task force to assess the damage that may have been caused by Lo’s breach.General Lo’s actions may have a greater effect on US-Taiwanese military relations, says Chih-cheng Lo, president of the Taiwan Brain Trust, a policy consulting company working on USTaiwanese relations.

“China has been very aggressive lately in its efforts to penetrate Taiwan’s military. This isn’t an isolated case, there are likely more to come,” he said. “Its likely now we’re in a time when the U.S. is thinking about sending F-16 C/D fighters. If Taiwan can’t rectify some of these problems, then the U.S. may reconsider some of its lines of exchange with Taiwan.”

Photo courtesy of cristyli.com

Major General Lo Chen Hsienche, Tawain’s Ministry of National Defense, has been charged with the largest account of espionage in recent history.

In 1979, the United States promised to sell weapons to Taiwan in what was called the Taiwan Relations Act; Washington will approve the aircraft sales. Taiwan asked for the F-16s in 2007.

Since the election of President Ma Ying-jeou and his Kuomintang Party, China and Taiwan have relaxed tensions.

Economic ties and investments have grown.

However China continues to claim Taiwan as its territory and has threatened military force to regain it. China has over 1,000 missiles aimed at Taiwan.

Contact Wesley at wesley.satterwhite@student.shu.edu

Mubarak Steps Down Amid Celebrations in Egypt

By Douglas Tatz, International News Writer Fireworks, car horns, and deafening shouts of joy filled the air in Cairo and other Egyptian cities as pro-democracy protestors finally brought about the end of President Hosni Mubarak. In his short speech, vice president Omar Suleiman announced Mubarak’s resignation and ceded power to Supreme Council of the Armed Forces.

The level of emotion was overwhelming. In Tahrir Square and outside of Mubarak’s main palace, protestors cheered wildly, frantically waving their flags.

Hundreds of thousands of people released the frustration and outrage that has accumulated for more than 30 years when their dictator finally realized his time in power was over. Friday was a day full of protests.

Citizens gathered not only in Cairo, but in the other major Egyptian cities of Alexandria, Mansoura, Mahalla, Suez, Tanta and Ismailia.

Protestors laid siege to the state television station, accusing the leader of being Mubarak’s puppet. For several days, the military guarded the station; however, they finally stood aside as angry protestors surrounded the station.

These protests will have a powerful impact not only upon the future of Egypt, but upon the future of many other coun-

Photo Courtesy of Reuters

An Eqyptian protester burns a photograph of ex-President Hosni Mubarak.

tries. This is not the first successful revolution, and many believe it will not be the last. Just a few weeks ago, protestors in Tunisia successfully ended the rule of another oppressive ruler, Zine el-Abidine Ben Ali. In other states, such as Jordan, leaders are frantically making changes to appease their peoples, inspired by the dramatic revolutions taking place. Nearby, Israel has been watching closely, afraid that the 1979 peace treaty is at stake.

Israel demanded on Friday that the new government of Egypt would continue to uphold the treaty.

The fall of Mubarak, a longtime important ally to the United States, poses a challenge to the White House. However, Obama had optimistic words to say about the revolution.

He stated, “Egyptians have inspired

us, and they’ve done so by putting the lie to the idea that justice is best gained through violence.” Obama also praised the military for acting responsibly.

On Friday, even before Mubarak stepped down, the military issued a communiqué, promising to carry out several constitutional reforms.

Now that Mubarak has stepped down, the military possesses complete power over the nation. It is hoped that the military will maintain peace and help to establish a temporary government, which can then begin democratic reforms.

Although many are overcome with relief and with joy, Egypt still faces challenges. While the military promised fair elections, it is unclear whether they will honor the desires of the people. Many Egyptians have resolved to continue the protests until they see the change they desire.

The road to democracy will not be an easy one. The pro-democracy movement will meet with the military to start discussing a new government.

However, ensuring fair elections and forming a truly democratic government will be difficult. Obama further commented that the new government “must bring all of Egypt's voices to the table.”

Contact Doug at douglas.tatz@student.shu.edu

16

TUESDAY, FEBRUARY 15, 2011

THE STILLMAN EXCHANGE

International Business

Russia Looks to Overcome Domestic Issues and Attract Foreign Investment

By Alina Bykovtseva-Mora, International Business Writer Russia represents exciting investment opportunities for the rest of the world since it is a huge nation with vast natural resources and an emerging economy.

Government officials have enacted a new set of rules, such as a lowered capital gains tax, to make Russia look even more desirable for foreign investors.

President Dimitry Medvedev delivered the opening speech at the World Economic Forum in Davos, Switzerland on January 26, 2011, where he introduced opportunities for doing business in Russia to the global business elite. Among these opportunities are the county’s massive privatization program, involvement of major world banks in the country’s economic modernization, and the development of the financial sector, in which Russia has already abolished taxes on long-term investments.

Despite so many attractive prospects, many investors are overly cautious with the investment of their capital into the country, due to the high level of corruption. The British consulting firm Maplecroft placed Russia 186th out of 196 countries for political risk to business. The Corruption Perception Index 2010 ranked Russia as

Photo courtesy of AP

Russian President Dimitry Medvedev at the World Economic Forum in Davos, Switzerland.

one of the most corrupt countries around the world (157 out of 178 ranked countries).

Corruption has reached 50 percent of the country’s GDP with jobs for sale and court decisions available at a price. These numbers may represent substantial burden for those who are looking to invest in Russia.

However, according to a Russian legal expert, specializing in capital markets, mergers and acquisitions, corporate matters and natural resources, and who wished to remain anonymous, “corruption really

affects the attractiveness of Russia as a target for foreign investments.

“However, there are many investors that have been doing business for many years and they have learned how to ensure anti-corruption compliance with the transborder laws of their states of origin, and how to not lose competition in the internal market, by avoiding any fee-based incentives for state servants and governmental officials.”

He believes that, despite some political risks and ambiguity of Russian law, foreign investors have extensive opportunities for doing business in Russia mainly due to the tax system that is “less burdensome than those in Europe or in the United States (being second only to Cyprus)”. In addition, “launching of any business in Russia (except for subsoil and energy industries) is a less money- and time-consuming procedure as compared with the US or Europe.”

Despite some arguments that can be made against investments in Russia, the country does represent many opportunities for foreign investors. However, it is not going to be easy.

Rapid economic growth has already begun to pose challenges to the Stora Enso pulp mill project. Chief executive of the joint project, Erwin Kaufmann, says the venture faces two major difficulties in construction of the mill.

“Firstly, the country is enjoying a fairly good economic situation, and there is full employment in some sectors, like con-

struction.” He continued, saying, “We need workers with specific skills, like welders for special pieces, and those are difficult to find even in larger countries.”

Until the recent economic boom, unemployment was a widespread problem with one in five unemployed as recently as 2002. Currently the unemployment rate settles at 6.1 percent which leaves the Stora Enso management to work with the government to fill its labor needs.

When asked to share his thoughts on the impact of this same service if it were to be provided in the United States, Seton Hall University student Colton Furbur felt it would be a great success.

“This culture has become so lazy and this type of service would be so easy for people. If this delivery service tablet saves people from picking up the phone or searching on the internet to place orders then I believe people would definitely use it” Furbur explained.

Seven-Eleven Japan plans on extending its area of service in the future once they can assess the profitability of the project. This raised concerns in the eyes of Ian Baker, another student from Seton Hall, who feels that it will help but doesn’t know if it will be successful in the long run. “I just think it will become too costly if they give out these tablets for free,” says Baker.

“The future of this experiment depends greatly on how affordable these tablets would be to the general public.”

Contact Ben at benjamin.canning@student.shu.edu

Contact Earlene at earlene.cruz@student.shu.edu

Contact Alina at alina.bykovtsevamora@student.shu.edu

In order to reap the full benefit of this massive foreign investment and potential future investments, labor needs must be met through government initiatives. By ignoring this issue and the recommendation of the IMF, future growth could be in peril.

Contact William at william.suggs@student.shu.edu

Seven-Eleven Announces Tablet PC-Driven Delivery Service for Elderly Japanese

By Ben Canning, International Business Writer Seven-Eleven Japan Co. announced on February 4 that it will catalyze its already established in-home delivery service by utilizing user friendly tablet computers.

This experimental project will allow “shopping refugees” the ability to easily order out from the convenience store when their current conditions impede them from heading to the market place themselves.

The six month experimental service will be conducted through a joint venture with Nippon Telegraph and Telephone East Corp. (NTT East) and Urban Renaissance Agency (UR). The project will target 500 UR condominiums that house the elderly in Tokyo's Chuo and Meguro wards. NTT East’s optical fiber broadband service will allow customers to order from a menu of nearly 200 items including beverages, snacks, and boxed lunches.

This is, however, not the first time Japan has seen such a delivery service.

Seven-Eleven Japan has already implemented the service through the use of the internet and telephone, but the addition of

tablet PCs can aid people – specifically the elderly and the handicapped – in placing orders from the comfort of their own homes. Seven Eleven believes this will be incredibly helpful for those unable to physically get themselves to the store due to disability or impending weather.

For this experiment, NTT East plans on providing its senior friendly “Hikari i Frame” tablet to the households free of charge.

Users will also be able to get in touch with family members located in remote cities with the tablet. Seven Eleven Japan also plans on introducing a similar service for cleaning and laundry in affiliation with other household service agencies.

The project is backed by enthusiastic supporters from the company. Seven Eleven Japan President Ryuishi Isaka stated during a press conference, “With over 6 million people living in areas with little accessibility to grocery stores, we believe the potential market is large.”

This innovative service technology seems to fit in well with our ever evolving virtual world and could open up many doors in the future of delivery services.

By Earlene Cruz, International Business Writer At a recent European Union meeting in Brussels, Germany and France made bold efforts to install new economic policies, in an attempt to strengthen the integration of the euro. Given Germany’s swift economic recovery, it is no surprise that it would help to pioneer a reconstructive plan for the rest of Europe.

However, the proposal from the leaders of the nations, the German chancellor, Angela Merkel, and the French President, Nicolas Sarkozy, was not greeted with much enthusiasm, particularly in countries where the euro is not the main currency.

Those nations, like Poland and Sweden, maintain that a movement towards a more unified economic structure limits the individual countries’ power to retain a relatively low corporate tax.

Additionally, shifting to the euro would make the countries’ economies subject to ruling by individual governments rather than by the European Commission, which is entitled to handle such economic issues.

Specifically, countries who do not use the euro fear being sidelined and having their opinions overshadowed at future summits by those of Germany and France.

The plan specifically aims to tighten the economic stability across the 17 nations that encompass the eurozone area.

“We want to bring in a competitiveness pact and step by step bring about a more linear shared growth,” German Chancellor Angela Merkel said at the European Union summit. Merkel maintains that the shift to using the euro would not take effect immediately; restructuring the economy certainly takes time, but the final results would lead to a more unified economic governance.

The pre-existing opposition to the proposal already foreshadows the many issues that will emerge when carrying out the plan. However, the nations are not forced to engage in the implementation of the euro; instead, they will be invited to join.

“For us, it's not simply an economic issue, it has to do with our identity as Europeans. For those of you who want to bet against the euro, be careful how you invest. We are determined to ensure the strength of the euro,” President Sarkozy insisted at the summit.

Sarkozy’s emphasis on the euro as a unifying factor that transcends economic issues may dismiss the notion that France and Germany are wishing to take jurisdiction over the entire European economy.

His strong belief and determination about strengthening the euro certainly suggest the sense of optimism that lies with the uniform implementation of the euro throughout the eurozone.

An upcoming meeting scheduled for March 4, 2011 will continue investigating the issue.

Finnish Firm Sends Record Foreign Direct Investment into Uruguay ...continued from page 1

Germany and France Call for Tighter Integration to Save the Euro